Angus Robertson has welcomed a new agreement which will strengthen business links between Scotland and Ukraine and support the recovery and reconstruction of Ukraine.
A Memorandum of Understanding between the Scottish Government and the Ministry of Foreign Affairs of Ukraine commits the two governments to strengthening trade and investment links through information exchange and practical support for businesses working in both countries.
Total trade in goods between Scotland and Ukraine was worth £38.4 million in 2024. A number of Scottish companies are supporting Ukraine’s efforts to rebuild, including Coatbridge-based Cairnhill Structures Ltd which has supplied fabricated steel to rebuild two bridges in Kyiv destroyed during the Russian invasion.
The signing took place during a visit to Scotland by a delegation of more than 60 Ukrainian mayors and business representatives.
External Affairs Secretary Angus Robertson said: “Scotland is deeply committed to supporting Ukraine, whose men, women and children are putting their lives, their freedom and their prosperity on the line to defend their country – and all of our democracies.
“The Memorandum of Understanding we have signed today will strengthen the trade and investment relationship between Scotland and Ukraine, helping businesses in both countries to grow through the exchange of ideas, knowledge and practical support for businesses working in-country.
“We want to learn from each other to make the most of our combined strengths, from e-commerce, to green energy technologies and innovation in agrifood. Scotland stands ready to support Ukraine to recover and rebuild from the damage caused by Russia’s barbaric aggression.
“We will work with the UK Government and our international partners in support of Ukraine’s long-term future, her sovereignty and social and economic prosperity.”
The Consul of Ukraine in Edinburgh Andrii Madzianovskyi, who signed the agreement on behalf of the Ukrainian Government, said: “For Ukraine, this partnership opens new avenues for investment, technology exchange, and access to high-value markets.
“For Scotland, it provides opportunities to expand its business presence in Eastern Europe, diversify partnerships, and support Ukraine’s recovery and growth.
“We wish to see increased bilateral trade and joint business projects as well as stronger business networks and institutional ties. There will be promotion of innovation, sustainable development, and entrepreneurship and enhanced mutual trust and international cooperation.
“This agreement signals a commitment to long-term collaboration and mutual prosperity.”
Mounting pressures from inflation, increasing costs and demand are exceeding the Scottish Government’s additional investment in Scotland’s councils.
In 2025/26 councils received over £15 billion in government funding, with more money set to be raised from council tax and charges for some services. With communities paying more for services, their expectations are increasing.
In its latest assessment of local government finances, the Accounts Commission reports that additional costs from wage increases, higher employer National Insurance contributions and intensifying service demands, including social care as Scotland’s population ages, mean councils must cover a budget shortfall of £647 million in 2025/26.
Whilst councils have partly met this shortfall through service savings and increased charges for services, continuing to use reserves and make one-off savings isn’t sustainable. It intensifies pressures on future budgets.
Longer-term change in the way services are delivered is happening but must accelerate. Action is also needed to better understand the impacts on the most vulnerable communities.
Capital funding is vital for councils to invest in public buildings such as schools and libraries, as well as roads. It also underpins the significant transformation needed in the ways services are delivered in the future.
Capital funding from the Scottish Government is increasing but has not returned to previous levels. Councils remain heavily reliant on borrowing to fund their planned £4.7 billion capital investment in 2025/26.
Mounting pressures mean Scotland’s councils must cover a budget shortfall of £647 million in 2025/26.
Difficult decisions lie ahead on what services can be delivered and how.
Derek Yule, Member of the Accounts Commission said: “There’s a growing expectation gap. Councils don’t have enough money to meet current demand, at a time when local communities are being asked to contribute more through increases in council tax and charges for some services.
“Councils need to provide clearer budget information and work with communities to determine how services will be delivered in the future. These conversations won’t be easy.
“With public finances tightening, however, not all cost increases faced by councils can be met by government funding. Local action is needed now to find solutions to immediate and future financial challenges.
“This means difficult decisions on what services can be delivered and making major changes in how they are delivered.”
Michelle, a mother of three from Edinburgh has shared the impact Scottish Child Payment is having in her daughter’s life
“One of my daughters has autism and ADHD, and Scottish Child Payment allows me to do activities that calm her down and make her happy and that makes a massive difference.”
Figures released yesterday reveal that Michelle’s daughter is just one of 326,255 children who are actively benefiting from Scottish Child Payment.
Scottish Child Payment is unique to Scotland and provides financial support for families, helping with the costs of caring for a child. It is a weekly payment, currently worth £27.15, for every eligible child that a parent or carer looks after who’s under 16 years of age.
Michelle said: “Scottish Child Payment is something that helps you and helps your children when you’re in a difficult financial situation.
“I think there’s sometimes a stigma around applying for it, especially as a single mother, but I highly recommend that those who have yet to apply for it do so.”
Social Justice Secretary Shirley-Anne Somerville said: “Eradicating child poverty is the Scottish Government’s top priority and a national mission.
“Today’s figure show that the Scottish Government is supporting 233,040 individual clients and 326,255 children throughout Scotland, with over 7.5 million paid out in Scottish Child Payment.
“These payments are actively improving the lives of hundreds of thousands of children in Scotland – helping their families to access essentials and experiences they might otherwise miss out on because they live on a low income.
“In the coming year it is forecast we’ll invest a further £471 million, ensuring that this support continues to reach even more families and children who need it.”
We would urge those who are thinking of applying for financial support, to check their eligibility and start their application today.”
Funding to support local councils and the third sector
A funding package to support Ukrainian communities and culture in Scotland to flourish has been announced by Equalities Minister Kaukab Stewart.
Funding of over £600,000 will support third sector organisations working to support displaced Ukrainians, including community and cultural activities, while a further £3.5m funding for local authorities and COSLA will support displaced Ukrainians, as well as refugees and people seeking asylum, to settle into communities.
The funding was announced at an event hosted by COSLA, marking a visit to Scotland by a civic delegation of mayors from Ukraine.
Speaking ahead of the event, Equalities Minister Kaukab Stewart said: “Scotland stands in unwavering solidarity with Ukraine, as it has since Russia’s illegal invasion in 2022.
“More than 28,000 displaced Ukrainians with a Scottish-sponsored visa have arrived in the UK, and we are helping people rebuild their lives here.
“Many of those who left Ukraine shortly after the war outbreak have now been in Scotland for several years, forming thriving Ukrainian communities right across the country. We want those communities to flourish, and this funding will support cultural and social activities and events to strengthen. It will also support services to help people recover from the trauma of fleeing war.
“I’m very pleased to be announcing this funding at the same time as a visit from the Ukrainian rebirth delegation, and I look forward to exploring further opportunities for connection and partnership between Scotland and Ukraine.”
COSLA Community Wellbeing Spokesperson Councillor Maureen Chalmers said: “COSLA is so very pleased to welcome colleagues from Local Government in Ukraine to Verity House today.
“We are also delighted to be working with Scottish Government to host this event, coming together to show our commitment across government in Scotland.
“COSLA has expressed full support and solidarity to the Ukrainian people and our peers in local and regional government, standing ready to support those affected and play a very active part in Ukrainian refugee resettlement.
“COSLA welcomes Scottish Government’s announcement of the continuation of £3.4m resettlement funding for Local Authorities for 2025-26. This funding will play an important role in enabling councils’ ongoing work supporting the integration of Ukrainians fleeing Russia’s illegal war, as well as other people seeking protection in this country.
“We are also very grateful for confirmation of continued funding for COSLA to support the work that we do with our member councils and with Scottish Government in relation to the integration of people displaced from Ukraine, as well as others who are seeking sanctuary here and migrants who are at risk of destitution.”
Funding to support local authority resettlement support
£ 3,400,000
Funding for COSLA
£ 175,400
This funding is part of a broader package of funding this financial year, which will support Ukrainians and displaced people from all backgrounds settle into life in Scotland.
The budget for a programme that uses technology in housing to help older people remain independent for longer will more than double this year from £8.2 million to £20.9 million.
This means more housing association tenants will benefit from the Registered Social Landlord Adaptations Programme, a preventative model that also reduces hospital admissions and long-term care costs.
On her visit to Bield Housing Association’s Tech Hub in Linlithgow, the Social Justice Secretary Shirley-Anne Somerville saw a variety of adaptations that are making a difference to the lives of older people and saving public money.
Ms Somerville said: “Scotland faces significant challenges as our population ages and it is preventative, people-focused approaches like this that will help us deliver better outcomes for older people while making the best use of public resources.
“That is why we announced in our Programme for Government that we would more than double the budget this year for the Registered Social Landlord’s Adaptations Programme from £8.25 million to £20.9 million to allow housing associations to plan and deliver more adaptations for their tenants.
“This financial year we are also investing £768 million in affordable housing, the majority of which will be for social rent. This reflects our long-standing commitment to ensure everyone in Scotland has a safe and affordable home to live in.”
Chief Executive of Bield Debbie Collins said: “Investing in the right housing and technology supports older people to manage their health, stay connected, and live independently – reducing reliance on formal care and helping to avoid preventable hospital stays.
“We believe housing must be seen as part of the health and care infrastructure and that continued investment in digital solutions and accessible homes not only improve people’s lives but delivers public value by saving money in the long-term.”
Increased funding to help young people away from crime
Projects supporting young people at risk of being drawn into criminal activities are to receive up to £26 million over the next three years.
The Scottish Government’s CashBack for Communities programme uses money recovered from seized criminal assets to provide crucial support to young people who may be at risk of becoming involved in offending or antisocial behaviour.
Successful projects in the programme’s next stage (2026-2029) will deliver a range of activities and support for those aged 10 to 25, to help tackle some of the underlying causes of antisocial behaviour and criminal activity. Projects will also provide access to trusted adults who young people can confide in.
Since 2008 CashBack for Communities has invested £156 million and supported around 1.4 million young people across all 32 local authorities in Scotland.
Visiting a project based at Glasgow’s Easterhouse Sports Centre, Minister for Victims and Community Safety Siobhian Brown said: “CashBack for Communities is inspiring. It turns the proceeds of crime into life-changing opportunities for the thousands of young people who take part in projects across Scotland every year.
“Over the course of the next three years of the programme, we are providing £26 million to organisations to deliver diversionary and support work with children and young people.
“By learning new skills and boosting their confidence, it helps young people in our communities who are at risk of becoming involved in crime be diverted from that path and realise their potential.
“Since its inception more than a million young people have received support to turn their lives around, with opportunities provided into employment, education or volunteering.
“CashBack’s success is also testament to the work of law enforcement partners in disrupting organised crime groups – bringing them to justice and seizing their ill-gotten gains, using them to deliver a successful programme across the country.”
CashBack for Communities is a Scottish Government initiative which takes funds recovered through the Proceeds of Crime Act 2002 and invests them back into communities. It supports delivery of Scottish Government’s Vision for Justice in Scotland.
The UK needs a national mission to raise living standards and provide people with hope that things will get easier, starting with the restoration of a Winter Fuel Payment to all pensioner households, First Minister John Swinney has said.
Speaking ahead of talks with Prime Minister Sir Keir Starmer in London, the First Minister said he will press for action to help people struggling with the ongoing cost of living crisis, amid increasing inflation and international economic instability.
Mr Swinney said the first action of the UK Government must be to accept the cut to the Winter Fuel Payment was wrong and announce a restoration so all pensioners get a payment.
The First Minster said people need to believe things can get easier and that he plans to raise specific concerns relating to Scotland’s economy with the Prime Minister which could help accelerate economic growth.
This includes the impact on Scotland of the recently announced UK-US trade deal, the agreement reached with the European Union, Carbon Capture and the case for a bespoke migration policy for Scotland.
Mr Swinney will be in London for a programme of meetings, including a bilateral with the Prime Minister, a multilateral with the First Minister of Wales, First Minister and deputy First Minister of Northern Ireland, and a plenary session of the Council of Nations and Regions.
First Minister John Swinney said: “People across the UK are living through a period of huge uncertainty and for some, that is undermining the trust they have in government.
“Cutting the winter fuel payment saw the UK Government breaking promises and removing vital financial support for some of the most vulnerable in our society. Having effectively conceded the argument by announcing a partial U-turn, the Prime Minister should accept the cut was wrong and restore a universal winter fuel payment.
“In Scotland, we are introducing universal winter heating payments through our Cost of Living Guarantee. This will see payment made to all pensioner households, with the poorest receiving the most support which is fair amid ongoing pressures.
“If the UK government want to provide people with hope that things will get easier, the Prime Minister should restore the winter fuel payment as part of a new national mission to raise living standards.
“I will raise this issue with him alongside other critical issues, including our proposal for a Scottish Graduate Visa, Carbon Capture and what impacts recent trade deals will have on Scottish producers and businesses.
“We are willing to work with him and the UK Government, but the question is whether he is willing to work with Scotland and give people hope that a better future is possible.”
The First Minister will hold bilateral talks with the Prime Minister in London today – Friday 23 May.
The First Minister is then due to join the First Minister of Wales, the First Minister and Deputy First Minister of Northern Ireland for further talks, before joining a meeting of the UK Government’s Council of Nations and Regions.
Green aircraft engine developer ZeroAvia is to establish a major manufacturing base in Scotland, creating around 350 jobs.
The US company’s Hydrogen Centre of Excellence will be sited in the Advanced Manufacturing Innovation District Scotland (AMIDS) in Renfrewshire and produce advanced fuel cell systems for its hydrogen-electric aero engines. The facility is expected to begin operating by 2028.
Scottish Enterprise has awarded a grant of £9 million to the project, building on an earlier £20 million investment in the company from the Scottish National Investment Bank. The grant will unlock significant multiple investments from ZeroAvia as it develops the facility and operations, with the company targeting a multi-billion pound global export market.
ZeroAvia’s engines can reduce operating costs for airlines and would cut aviation’s contribution to global warming by emitting only water. The company hopes an engine for up to 20 seat planes will enter service in 2026 and it is working on a powertrain for 40 to 80 seat aircraft.
First Minister John Swinney visited Glasgow Airport to meet with ZeroAvia and partners supporting the project and Scotland’s green aviation agenda.
The First Minister said: “Scotland has the skills, the talent and the innovation to be at the forefront of efforts to tackle the climate emergency while developing significant new opportunities to grow the economy.
“ZeroAvia’s decision to establish a base in Scotland – creating 350 highly-skilled jobs in the process – is the perfect illustration of Scotland’s growing reputation in the global transition to net zero.
“Attracting inward investment is critical to economic growth and we will continue to work with Scottish Development International and other partners bring more high quality jobs to Scotland.
“By setting out a strategic vision in priority areas such as the hydrogen we are sending a clear statement to investors and businesses that Scotland is at the heart of the green energy revolution. The Hydrogen Centre of Excellence will be at the forefront of fuel cell technology and offers a hugely promising and exciting proposition for sustainable aviation.”
Val Miftakhov, Founder and Chief Executive, ZeroAvia said: “Scotland has some unique advantages for ZeroAvia with strong aerospace and engineering skills, a burgeoning hydrogen sector and a clear aviation strategy with potential for early adoption of zero-emission flights.
The aviation industry is on the cusp of the biggest transformation since the advent of the jet age, with entirely new propulsion systems set to power the next era of aviation – cleaner flights, better economics and better experiences for all.”
“With this new facility, Scotland has a big role to play in driving this transformation. We welcome the grant award from Scottish Enterprise and the support of our equity investors that has enabled us to move into another phase of manufacturing readiness as we progress towards certification of our first engines.”
Scottish Enterprise Chief Executive Adrian Gillespie said: “It is fantastic that we’ve been able to attract ZeroAvia to Scotland, not only for the jobs they will be creating, but for the hugely important role they can play in ensuring Scotland maintains its reputation for fostering innovative green technologies.
“Making aviation sustainable is crucial to a successful green economy and Scottish Enterprise is fully committed to backing ambitious companies with innovative ideas.
“ZeroAvia’s decision to come to Scotland is a real boost to our energy transition leadership, as well as being a further example of why Scotland is such a great place for inward investment.”
Projects to unlock economic growth and tackle poverty
Projects across Scotland will benefit from Scottish Government investment to help regenerate communities and drive economic growth.
More than £21.5 million from two Scottish Government funds will bring 24 disused or derelict sites and buildings into use, creating more than 160 jobs and support nearly 900 training opportunities.
Deputy First Minister Kate Forbes confirmed the 2025-26 allocations from the Regeneration Capital Grant Fund (RCGF) and Vacant and Derelict Land Investment Programme (VDLIP) during a visit to Powderhall in north Edinburgh.
City of Edinburgh Council will receive £1.4 million for remedial works at the former waste disposal site, paving the way for a housing-led regeneration project that will provide 259 homes, including affordable housing.
There’s also £60,000 for Spartans’ youth facility at Ainslie Park.
Other initiatives being supported include:
reviving a slate quarry in Cullipool owned and operated by the Isle of Luing Community Trust
converting a former tram depot in Dundee into a new transport museum
redeveloping a former derelict school into energy efficient housing units in Borrodale on the Isle of Skye
creating film production suites and a training centre at a former glue factory in Glasgow
extending Lochvale House community centre in Dumfries to include a café and soft play area
The announcement coincides with a call for expressions of interest in 2026-27 funding to support regeneration projects in disadvantaged communities. As set out in the 2025 Programme for Government, future Scottish Government support for regeneration projects will be channelled through one national fund – the Regeneration Capital Grant Fund – to streamline the application and delivery process.
The Deputy First Minister said: “This funding will help to transform derelict sites the length and breadth of Scotland, creating homes, jobs and facilities that drive economic growth, tackle poverty and help support and growing thriving communities.
“This funding forms part of a wider £62.15 million investment by the Scottish Government towards regeneration projects in 2025-26. This will help to revitalise green spaces, town centres and derelict sites to benefit people across Scotland.
“The 2025 Programme for Government stets out our renewed commitment to supporting regeneration projects across the country with one streamlined fund delivering this vision from next year.”
The RCGF is delivered in partnership with COSLA.COSLA’s Spokesperson for Environment and Economy, Councillor Gail Macgregor, said: “Today’s announcement sees the return of invaluable tools and resources for local authorities to help deliver on the regeneration aspirations of the communities which they represent.
“The diversity of successful projects on show demonstrates how localised approaches can deliver benefits across the country and showcase the best of partnership between local authorities and our communities to deliver economic and social renewal.
“We look forward to continuing to work with Scottish Government on regeneration in the months to come.”
City of Edinburgh Council’s Housing, Homelessness and Fair Work Convener Lezley Marion Cameron said: “Our development plans at Powderhall are breathing new life into an excellently located, long unused industrial site, and are set to deliver hundreds of much-needed new homes and work and community spaces too.
“The transformation of Powderhall is already well underway with the restoration of the former stable block, which retains unique heritage features of the site’s former use.
“Regenerating a historic, brownfield site like Powderhall is complex, challenging, and costly therefore I warmly welcome this Scottish Government investment.”
Regeneration Projects supported through the RCGF and VDLIP fund in 2025/2026:
Fund
Organisation
Project
Award
RCGF
Angus Council
Arbroath Courthouse Community Trust
£2,138,985
RCGF
Argyll & Bute Council
Fyne Futures Local Food Production and Training Centre
£250,000
RCGF
Argyll & Bute Council
Isle of Luing Community Owned Slate Quarry
£1,747,936
RCGF
City of Edinburgh Council
Spartans Youth Work and Education Building
£60,000
RCGF
Clyde Gateway
Baltic Street Play
£850,000
RCGF
Dumfries and Galloway Council
Let’s Get Sporty – Lochvale House
£1,572,370
RCGF
Dundee City Council
Dundee Museum of Transport – A Catalyst for Regeneration of Stobswell
Supporting postgraduate students with living costs and course fees in Scotland
Bursaries available to support postgraduate social work students in the 2025-26 academic year will increase by almost 50% on average.
From 1 June students commencing courses in the academic year beginning August 2025 will be able to apply for £11,000 to support them through each year of their studies – split between £6,000 towards living costs and £5,000 for course fees.
The average bursary previously available to postgraduate social work students was valued at £7,415.
The scheme, funded by the Scottish Government and administered by the Scottish Social Services Council (SSSC), will provide support to up to 250 students in the coming academic year. Additional allowances for students who are carers or who have disabilities will continue to be available for those eligible.
Students can apply for the support from 1 June through the SSSC website.
Minister for The Promise Natalie Don-Innes said: “Social workers play a vital role in supporting people and their families within their communities.
“We are determined to support more people to acquire the skills and knowledge to enter social work, and these increased bursaries will help to remove financial barriers for many postgraduate students amidst the wider cost of living crisis.
“This increased bursary is in addition to wider support, including grants to support social work students undertaking mandatory assessed practice learning placements and loans for tuition and cost-of-living support for those not eligible for the SSSC bursary.”
Alison Bavidge, National Director of the Scottish Association for Social Work, said: “This is excellent news for postgraduate social work students. It is a significant piece of the jigsaw Scotland needs to put in place to deliver the social workers of the future. It should help to make social work a more attractive career and enable a wider range of applicants.
“While this improvement to the postgraduate bursary is very welcome, we hope the Scottish Government will build on this progress and further enhance support to ensure social work is an accessible profession.”
