Official Report 812KB pdf
The next item of business is a statement by Shona Robison on the Scottish budget 2026-27. The cabinet secretary will take questions at the end of her statement, so there should be no interventions or interruptions.
14:20
Today I present a budget for Scottish families, for a stronger national health service and for investment in Scotland’s infrastructure. As a result of the decisions that I am announcing, some of the pressure on families and family budgets will ease; there will be more operations and appointments in our health service and it will be easier to access a general practitioner; college funding will grow, giving our young people more opportunities to learn and flourish; life will be a little easier for parents, with more wraparound childcare; and more young Scots will be able to find a home that they can love and can afford, which will help them to build a more secure future right here in Scotland.
The Government wants what is best for Scotland. That is why we will continue to offer and expand the best cost of living support package anywhere in the United Kingdom. My message to the people of this country is clear: thanks to our cost of living commitments, they will be better off in so many ways because they live in Scotland and because Scotland is led by the Scottish National Party.
I am very proud to present a budget for Scotland with an investment of almost £68 billion in the wellbeing of our people and the future prosperity of our nation. I also present our multiyear spending plans. Given a total investment of almost £200 billion, the Scottish spending review and the infrastructure investment pipeline demonstrate the scale of our ambition for our nation.
I will begin today where I left off in my budget last year. Just over a year ago, I announced in the chamber our intention to scrap the cruel two-child cap. That was widely welcomed across Scotland, but the representatives in this Parliament of the UK’s governing party could not bring themselves to vote for it. It has taken the UK Government almost a year to catch up, but I am pleased that it has done so.
The Scottish Government will now go further and do more. Instead of mitigating yet another damaging Westminster policy, we can use the £126 million that is released for the coming year to keep even more Scottish children out of poverty.
Our aim is to target all those extra resources in the most effective way, to ensure maximum impact on those families in greatest need by increasing their income and reducing their costs. That means, this year, as part of a £50 million whole-family support package, specific additional support for colleges as part of on-going initiatives to raise income through skills and education, so that people can find work, or better-paid work; action to remove transport barriers that make it difficult for some to access work; and additional resources for key third sector partners to target more precisely those families who are hardest to reach. It means a further £49 million this year for measures that we will announce in the updated child poverty delivery plan in March, as we strive to reduce child poverty faster and further.
In 2026-27, the transformational Scottish child payment will, of course, increase with inflation. In 2027-28, because of the choices that have been made in this budget, we will go further, by boosting to £40 a week the payment for families with a baby under one. The first year of a baby’s life is one of the most exciting times for any family, but we know that that time can also bring extra stress and costs. That is why the Government is delivering the strongest package of support for families with young children anywhere in the UK, from the baby box to best start payments and, of course, our game-changing Scottish child payment. That support for mums and dads will help them through the critical first year of their child’s life, delivering the best start in life for children and for families. That commitment speaks to who we are as a Government and to our values and ambition for each and every child in our land.
To deliver even more for those with the least, we will ask those with the most—the very wealthiest—in our land to contribute that little bit more. That includes the introduction, by April 2028, of two new council tax bands for the most expensive properties in Scotland, which will be those that are worth more than £1 million on an up-to-date valuation. That measure will bring greater fairness as well as increased revenues to councils.
From April 2027, the air departure tax will come into force and we will shortly launch a consultation on a new Highlands and Islands exemption continuing to exempt domestic flights. Through that new framework, we will introduce a private jet tax. Those who choose to travel by private jet in Scotland will pay a fair share for that privilege. In doing so, they will help us to make Scotland the fairer nation that we all know it can and should be.
Self-government works for Scotland. The choices that we can make in this, our national Parliament, make a real difference for the people we serve. Our choices mean that child poverty in Scotland is at a 30-year low and it has been falling in Scotland while it has risen elsewhere on these isles. That has been achieved because we can build a social security system that is more compassionate and a tax system that is more progressive.
Decisions taken by this Parliament and Government have played a key role in reducing carbon emissions in Scotland by more than half. Public health has been advanced, with Scotland taking the lead on action to reduce the harm from alcohol and through transformational measures such as the human papillomavirus vaccination.
The amount of electricity that is generated by renewable sources has increased more than fourfold since 2008—a step change that should mean substantially lower energy bills and will mean lower energy bills when Scotland’s energy is in Scotland’s hands.
Electrification of key rail routes has improved journeys for tens of thousands of commuters, and ScotRail has been brought into public ownership. We have been able to replace the UK’s costly private finance initiative with a more cost-effective alternative, which has, in turn, enabled us to build hundreds of new schools and substantially upgrade hundreds of others.
We have abolished Thatcher’s right to buy, which means that, after years when the number of socially rented homes was falling, it is once again increasing in Scotland. Indeed, since 2007, we have delivered more than 141,000 affordable homes, 101,000 of which have been for social rent.
Scotland has been changed for the better by this Parliament and by this SNP Government, but we are determined to go further. That is why this budget is focused not only on securing the gains that have been made but on moving forward to take the best next steps for our nation. When decisions about Scotland are taken here in Scotland by a Government that puts the people of Scotland first, transformational change can and does happen.
This budget is focused on delivery and hope, on a stronger NHS and on a brighter future for Scotland and the people who live here. It will direct more public spending to the front line. At its very heart is a commitment to effective and efficient policy delivery through a more modern public sector and smarter use of technology, including digital delivery, making it easier for citizens to access the services that they need.
Our approach to public sector reform will deliver £1.5 billion in efficiencies, helping us to protect front-line services from the worst impacts of a tightening fiscal environment, caused not least by the constraints that the UK Government has put on Scotland’s budget, including the near £400 million shortfall in funding as a result of the chancellor’s decision to increase employers’ national insurance contributions.
Our ambition is clear: a Scotland where public services work seamlessly for people, are modern in their design and delivery, are accessible where and when they are needed, are flexible in how they respond and are consistently focused on the best outcome. In short, public services that are centred on the needs of the citizen, not the needs of the system.
Of course, for the budget to pass and for the benefits to be felt by families across Scotland, we need support and votes from other parties across the chamber. As before—[Interruption.]
Let us hear one another.
As before, my aim has been to seek common ground. Thanks to constructive pre-budget engagement, key priorities of Opposition members have been included alongside the priorities of the Government in my budget plans today. Those include, among other things, more money to improve neurodevelopmental assessments and care for children and young people; additional investment for changing places toilets; resources to support bus franchising; and support for the redevelopment of Edinburgh’s King’s Theatre.
From our budget conversations, I have no doubt that members across the chamber will also welcome actions in other key areas. That includes our commitment to the communities that are affected by the closure of Mossmorran, which will receive targeted support of £9 million over the next three years; our commitment to the residents of Shetland and Orkney, who will benefit from lower costs as we scrap peak fares for islanders on the northern isles ferries; and our commitment to the college sector, which will see a substantial 10 per cent increase in funding—that is £70 million extra this year. Alongside that, the Scottish Funding Council, supported by the Scottish Futures Trust, will be working with colleges, including Forth Valley College and Dundee and Angus College, to develop a comprehensive infrastructure investment plan that addresses local priorities.
This is a budget for a stronger health service and a budget that protects and enhances the best cost of living support package available anywhere in the UK. It is a budget that is worthy of support. For our NHS, it delivers a record £17.6 billion for front-line services; £2.4 billion to support the vital work of GPs, primary care and community services; and more than £2.3 billion of support for social care.
That means that our health service will have the resources that it needs to continue to reduce waiting times and cut waiting lists. I commend NHS staff for the work that they are doing right now to cut the longest waits—something that has now been achieved for six months in a row. There will be more operations and appointments, building on the targeted investment in last year’s budget, which has seen a record number of hip and knee procedures and an increase in in-patient and out-patient appointments. We know what works, and we are investing at record levels so that our NHS can do more of it.
There will be significant new investment in our staff—in higher wages, improved training and action to support staff wellbeing, retention and work-life balance. The NHS is nothing without its staff, and I want them to hear loud and clear that they are respected and valued. Thanks to their efforts, the NHS is already getting better, and the budget will continue to support them as they work tirelessly to put patients first.
For the social care sector, today’s budget will enable further action to reduce delayed discharges, as the Cabinet Secretary for Health and Social Care will set out following engagement with local government and health and social care partners. It also provides the resources that are needed to ensure that, where we commission services, those working in adult social care receive, at a minimum, the real living wage.
Once again this year, a bigger share of the health budget is going to primary care. That means that the number of GPs in Scotland will continue to rise, and more GPs will mean easier access. Because we are committed to ending the 8 am rush, the budget contains £36 million to begin the roll-out of new high-street walk-in GP clinics, with the first coming soon. Our ambition is to deliver the best care, at the right time and in the right place, free at the point of need. That includes an on-going expansion of our hospital-at-home programme, so that more people can receive the care that they need in the comfort and security of their own home. Members should have no doubt that we have an NHS in Scotland that is on the path to recovery: an NHS that, after Covid, which was a huge shock to the system, is getting better.
This is a budget that will enable our health services to do more and to do it better. I have no doubt that our constituents will not look favourably—that is an understatement—on any party that cannot bring itself to back a budget that offers so much for our NHS. This is a budget for the wellbeing of our people and the prosperity of our nation: for a society where the needs of people and planet are to the fore.
For the planet, that means that we will continue to play our part in global efforts to tackle the growing climate emergency. That includes an on-going commitment to decarbonise our economy, with investment to support more carbon-free transport and more carbon-free heating for businesses and homes, and to continue the expansion of renewable electricity generation around our shores.
Taken together, we are committing more than £5 billion this coming year towards measures that will reduce Scotland’s carbon emissions, increase our resilience in the face of climate change, and, in many cases, save families hard-earned cash. It is an investment in our landscape and our natural environment: assets that are not only priceless in themselves but are of vital importance economically—I think of the food and drink and tourism sectors, which are flourishing—and are vital to our health and our sense of self, and to our wellbeing in its fullest sense. It is an investment in those who care for our land, in our rural communities and our farmers, including a new package to nurture and develop regenerative and sustainable skills in food and farming.
Our commitment to the planet extends to investment beyond our shores. While others are choosing to reduce their commitment to international development, I am proud to confirm that, in Scotland, we will increase our international development fund by a quarter, to £16 million—different choices, different values.
For our people, this is a budget that delivers record funding to support Scotland’s creative and culture sector. As promised, there is a £20 million increase in the culture budget this year. It is through our songs and our stories that we best express ourselves and best understand ourselves and our place in the world. In these times of uncertainty, when there are so many pressures on family budgets, we can find some solace, and maybe even some much-needed escape, in art, dance, laughter and music and in the shared experience of a concert or festival. Scotland is richer because of our world-famous culture, and the Government stands full square behind our fantastic creative sector.
This is a budget that creates new opportunities for Scots to learn and to flourish. It includes extra funding not only for colleges, but for our universities, including £20 million for the University of Dundee, and an on-going commitment to Scotland’s high-quality apprenticeships, which this year alone will provide more than 31,000 Scots with a pathway to a sustainable, well-paid job. There will be targeted support to ensure that critical skills shortages in our offshore renewables sector are met, and to help retrain workers in the oil and gas sector. This Government is serious about a just transition, and serious about making the most of our renewables opportunity.
I know that many young Scots are struggling to get on the housing ladder and to find affordable homes to rent or buy. We will deliver record levels of investment to help deliver even more homes—a new generation of affordable, liveable energy-efficient homes.
Our plans provide vital support for children with additional support needs and give local councils the resources that they need to continue narrowing the attainment gap and to deliver on our commitments on class contact time. Overall, the funding for local government will increase by 2 per cent in real terms, comparing budget with budget—a settlement that is fair, and which recognises the important role of local government in the delivery of key services. Decisions on council tax rates will, of course, be taken locally. However, this is a reasonable deal and, given the cost of living pressures that we all recognise, I urge local authorities to translate the settlement into reasonable decisions on council tax.
Our ambition is for a society that is strong and an economy that is flourishing. Scotland is a nation of innovators and wealth creators, and this budget is designed to support those whose efforts are essential if our economy is to grow.
The most prosperous future for Scotland means being able to use our resources to deliver a clear competitive advantage for Scottish business, and that is why this Government believes that Scotland’s energy resources should be in Scotland’s hands. There is no good reason why Scottish companies are paying such high energy costs. However, short of independence, there are steps that we can and will take to get more direct benefits from the renewables revolution in our economy. That includes providing resources in the budget to support the creation of a diverse and sustainable supply chain for offshore wind in Scotland. The budget will also provide money to support a just transition for our industrial sector, including targeted investment in the Grangemouth industrial cluster.
We are working with our partners in Shetland Islands Council, Orkney Islands Council and Western Isles Council to agree a new accelerator model—a transformative package of funding that, we believe, can unlock hundreds of millions of pounds of investment in those island communities. Alongside that, our new national islands plan will take forward priority projects, including those relating to clean energy and fixed links, as well as other key infrastructure projects.
Those investments will form part of a capital investment programme worth £7.6 billion, which, given that infrastructure investment is a recognised driver of growth, will deliver significant economic benefits across our economy. The programme includes investment in our railways, with the delivery of new battery electric trains on the Borders and Fife routes, and on-going investment in the most extensive renewal of our ferry fleet since devolution. This year, the investment includes nearly £200 million for the dualling of the A9. I say this loud and clear: the Government is committed to the completion of the A9 by 2035. [Interruption.]
Thank you, members.
We will take forward the dualling of key sections of the A96 and, working with partners, we will ensure that a new station at Winchburgh is delivered.
In 2025, Scotland secured a decade-long stretch as the top UK location outside London for foreign direct investment. Central to that achievement is the work of our enterprise agencies and the Scottish National Investment Bank. I am pleased to say that the budget delivers on our commitment to invest £1 billion in the bank by the end of the current parliamentary session, and it keeps us on track to invest £2 billion over the bank’s first 10 years.
The budget will build on that progress with a package of funding to support disadvantaged and underrepresented young entrepreneurs and to support companies to scale up. The budget also includes enhanced support for VisitScotland and a commitment to multiyear funding to further support town centre regeneration.
The small business bonus scheme, which removes the burden of rates from 100,000 properties—businesses such as hairdressers, bakers and cafes that form the lifeblood of every community—will be continued for the next three years. In response to concerns in the business community about the recent revaluation, we will reduce the basic, intermediate and higher property rates while providing transitional relief worth £184 million over the next three years.
We will provide 15 per cent non-domestic rates relief in 2026-27 and in each of the three years of the revaluation cycle. Over three years, that will be worth £138 million for retail, hospitality and leisure premises that are liable for the basic and intermediate property rates, with a cap of £110,000 per business per year. In our islands and designated remote areas, that business relief will be 100 per cent. In total, including the small business bonus scheme, more than 96 per cent of retail, hospitality and leisure properties will pay zero or reduced rates. Together, that will provide retail, hospitality and leisure premises with support worth £322 million over the next three years.
We are still awaiting details from the UK Government about possible changes to business rates for pubs in England, following press speculation last week. I assure members that, if additional resources become available, we stand ready to use them to provide even further support to the sector in Scotland.
There will be no changes to land and buildings transaction tax, and we will continue to match UK rates with the Scottish landfill tax.
This is a Government that cares about Scotland and all our people. That means that we will work harder than anyone else to secure the best possible deal for our nation and its people. Above all, that means that we are committed to delivering the best cost of living support package that is available anywhere in these isles.
The best cost of living deal in Britain is getting better. That is not only about the cost of living; just as importantly, it is about quality of life. Free prescriptions—which provide a saving of £9.90 per item compared with England—will be continued. Free eye examinations—which represent a saving of £25 compared with England—will be continued. Average council tax and water bills will still be lower than in England and Wales. Peak rail fares have been abolished and will remain abolished for as long as there is an SNP Government. Young Scots are protected from a debt burden that is approaching £30,000 because tuition fees in Scotland are free, and they will be free for as long as there is an SNP Government.
The baby box, which contains items worth £400, is a gift to every new baby that is born in our land. There are free school meals for thousands in our schools, including pupils from primary 1 to primary 5. There is free bus travel for all young Scots under the age of 22 and all older Scots over the age of 60. The provision of 1,140 hours of free, high-quality early learning and childcare, which is worth around £6,000, is welcomed by thousands of young parents.
Those are all policies that help with the cost of living. More than that, they are all policies that are focused in different ways on the wellbeing of our citizens at each and every stage of their lives.
The choices that have been made in this budget enable us to go further and do more. That includes funding to deliver a breakfast club for every Scottish primary and special school by August 2027. What will that mean in practice? It will mean that the morning rush to get everyone organised and out of the house will become that little bit easier. It will mean that there is the chance to drop kids off earlier at school, perhaps opening up new shifts at work. For some families, it will mean saving on the cost of breakfast; for others, it will mean kids getting a breakfast that they would not otherwise receive, fuelling them to learn.
Our plans also include new funding for wraparound activities in the afternoon and early evening. Building on the Scottish Football Association’s excellent extra time initiative, the budget will enable us to trial a programme of activities between 3 pm and 6 pm in a range of primary schools, which will help to get kids active and will offer parents the peace of mind that their children are being looked after, free of screens. By providing more wraparound support, we will give parents greater flexibility and freedom. As a third element, there will be more help for parents during the summer holidays.
To mark Scotland’s hosting of the Commonwealth games and return to the men’s football world cup, there will be investment in a summer of sport. I know just how costly it can be for parents to keep their kids entertained during the long summer holiday. Therefore, this summer, thousands of young Scots will have access to a range of free sport activities, including—with an eye to future Scottish Commonwealth games gold medals—a universal learn-to-swim offer for every primary school child in our land.
That is action by a Government that understands the pressures that many families are facing. It is action that will help to reduce costs, deliver more wraparound care and help to keep more Scottish kids out of poverty.
Self-government works because it enables us to take different decisions that are based on Scotland’s distinct circumstances and our particular priorities and values. That is why we have chosen to invest in the wellbeing of our society. Yes, that is about providing universal access to services that will leave more money in people’s pockets, but it is also about solidarity and a way of seeing the world that reflects who we are as a nation. It is an approach that is about making life a bit easier for all.
In the recent Westminster budget, the UK Government made choices on tax that, taken together, mean that standards of living in the UK will continue to stagnate—or, as the First Minister has described it, will remain as “flat as a pancake”. The chancellor decided to freeze income tax thresholds, including for the basic rate, which means that more of people’s hard-earned cash will get taxed, or taxed at a higher rate, until 2030-31.
I am making a different choice. I can confirm that, this year, while the others remain frozen, the thresholds for the basic and intermediate rates will increase by 7.4 per cent, which is well over twice the rate of inflation. That is an increase in those thresholds of almost 11 per cent in two years.
As a result, even more people in Scotland can expect to pay less tax than they would if they lived in England, Northern Ireland or Wales—more than 55 per cent of Scots are set to pay less income tax because they live in Scotland and have a Government that is led by the SNP.
This is a budget for a stronger NHS and a more prosperous Scotland and a budget that, once again, gives the people of Scotland the best cost of living deal anywhere in the UK. It is a budget that offers new ways to access a GP through walk-in GP clinics; new help for hard-pressed families with more wraparound care; new hope for young Scots who are looking for their first home; and more operations and more appointments in our NHS. Under this budget, more people will pay less income tax because they live here in Scotland. It offers new help and more help. It is a budget for families, a budget for Scotland and a budget that is well worth voting for.
The cabinet secretary will now take questions on the issues raised in her statement. I intend to allow around 60 minutes for questions, after which we will move on to the next item of business. I would be grateful if members who wish to put a question were to press their request-to-speak buttons.
This pre-election budget is as predictable as it is cynical, but the problem that John Swinney and Shona Robison face today is that hard-working Scots who are tired of being taxed to the hilt by the SNP simply will not wear it. [Interruption.]
Let us hear Mr Hoy.
It will not wash, because we know, and they know, that John Swinney has repeatedly hiked taxes and that he will never do what the Scottish Conservatives would do: comprehensively cut tax and increase thresholds now and into the future.
Although today’s change to thresholds for the basic and intermediate rates is to be welcomed, that does nothing for those people at the middle of the tax bands, who are paying 50 per cent tax on the pound between £43,000 and £50,000. That is the cost of the SNP.
This budget, like all SNP budgets, is smoke and mirrors, is tax and spend and still prioritises welfare over work, with £650 million extra being spent in the social justice portfolio.
With an election just 113 days away, John Swinney thinks that he can morph from Che Guevara into Adam Smith with no intervening steps. [Interruption.] However, ultimately, nothing has changed because, at its core, this SNP Government remains high on tax and low on delivery. [Interruption.]
Let us hear Mr Hoy.
Mr Swinney is chuntering away. Under the SNP today, Scotland still remains the highest-taxed part of the United Kingdom. [Interruption.]
Just a second, Mr Hoy. Members, I am finding it very difficult to hear Mr Hoy. Let us be courteous.
Mr Swinney does not want to hear his litany of failure being read out in the chamber, because economic growth is an afterthought, public services are failing, and businesses, which are deprived of rates relief in full and still potentially face huge revaluation bills, are continuing to teeter on the brink, despite the modest concessions today.
Let us look at what Shona Robison has announced. There is more foreign aid when people are struggling at home, and there is a £36 million increase in the constitutional and external affairs budget—a secret stash for John Swinney’s secret plan. There are cuts to economically productive areas, including cuts to the budgets for the Scottish National Investment Bank and Scottish Enterprise. Does anyone beyond the SNP’s clapping seals believe that the fundamentals of the Scottish economy will improve as a result of today’s budget?
I have a question for Shona Robison as she prepares to ride off into the sunset, leaving someone else to clear up the mess that she has created. Will the overall tax burden on Scottish households and businesses rise or fall as a result of the budget? How many businesses and how many jobs will be lost as a result of this Government’s failure to pass on in full the rates relief that it has received in the past and its failure to create a new system in order to stop this damaging rates revaluation? Which infrastructure projects, such as the full dualling of the A96, will be shelved as a result of the on-going gap in this Government’s capital funding?
This failing SNP Government cannot reverse the rot that has set in to public finances and the £5 billion budget black hole that it still faces. Lily-livered Labour says that it will let the budget pass, the Liberal Democrats look set to be lining up to support it and Reform is rolling in behind more benefit spending. Therefore, ahead of an election that will be defined by the cost of living, is it not the truth that only the Scottish Conservatives are standing up for Scottish taxpayers, by saving Scotland from an SNP Government that relegates growth, puts welfare over work and is still wedded to high tax for hard-working Scots?
What is cynical is having a billion pounds of unaffordable, unfunded tax cuts and not telling the public which public services you would cut by £1 billion. [Interruption.] That is cynical.
Before we go any further, I will say that I do not expect a single member of the Tory back benches who are here today to ask for a single penny of extra funding for public services, given that their front bench would cut services by £1 billion. We will not hear any asks for more money—[Interruption.]
Let us hear one another.
—from the Tory back benches.
As I set out in my statement, the estimates of the impact of the budget are that 55 per cent of taxpayers will pay less in Scotland. That figure rises to 57 per cent after costs such as pension deductions.
On business, I have set out that we will decrease the basic, intermediate and higher property rates in 2026-27, which will ensure that we have the lowest basic property rates since 2018-19. As I said in my statement, taking all the measures together, around 89,000 properties—or 96 per cent of all retail, hospitality and leisure properties—will benefit from zero or reduced rates. I would have thought that even Craig Hoy could welcome that.
The budget does not meet the aspirations of the people of Scotland, and it does not recognise their need for real change. It is the 19th John Swinney budget, so it is more of the same. Everyone in Scotland knows what that means: hundreds of thousands of people in pain on NHS waiting lists, a justice system that is past breaking point, an education system that is going backwards day by day, and more than 10,000 kids waking up each day in temporary accommodation with no home to call their own.
Scottish Labour has delivered an additional £10.3 billion for Scotland’s budget, and it is only this knackered SNP Government that could turn a £10.3 billion uplift into a £1.6 billion problem.
The positive measures in the budget see the SNP desperately trying to fix a few—I repeat, a few—of its own mistakes. It wants to pretend that it is turning the corner on its own abysmal record; in reality, it has decimated Scotland’s finances and brought our services to their knees.
When I have asked SNP ministers what their plan is for desperately needed change in our hospitals, schools, colleges and universities, and for our businesses and families across Scotland, it has been apparent that they do not even understand the question, let alone have the answers.
Their incompetence has taken Scotland’s NHS to the brink. There are people suffering in pain and a booming waiting list for direct flights to Lithuania for hip and knee replacements. Nearly £0.5 billion that could be spent each year on Scotland’s schools, upgrading our roads or building more houses is instead wasted on delayed discharge, which the SNP promised to eradicate 11 years ago. On top of that, £1 billion was lost to Scotland’s budget due to what the Independent Fiscal Commission calls an “economic performance gap”, which is a direct result of the SNP’s abject failure to grow Scotland’s economy.
That is the true record of the SNP Government, so why on earth would a 19th John Swinney budget change Scotland’s direction? Is it not the case that the real opportunity for change is just weeks away, when a new Government will be able to deliver real change? Is it not the case that the only way that we can finally kick out this knackered SNP Government—[Interruption.]
Let us hear Mr Marra.
—and choose a new direction for Scotland is by choosing Scottish Labour?
I thank Michael Marra for Labour’s decision to abstain on the budget without costing us a single penny, for the second year in a row. It is most helpful, and I thank him for that.
On the investment in the NHS, as I set out in my statement, we have had falls in long waits for six months in a row. This budget invests in our NHS to ensure that that fall continues over the next few months, because we know how important that issue of waits is for the people of Scotland. The budget also includes a massive investment in housing—£4.9 billion over the course of the spending review—to tackle the issues around temporary accommodation and make sure that everyone has a house that is warm and affordable to live in.
However, there is fundamental truth to Anas Sarwar saying that Labour is
“not in a strong negotiating position”
on the budget. I have some advice for Michael Marra: asking for something is a good start if you want to have a negotiating position on a budget. Maybe it will be third time lucky next year.
on the budget. I have some advice for Michael Marra: asking for something is a good start if you want to have a negotiating position on a budget. [Laughter.] Maybe third time lucky next year, eh? [Laughter.]
Always speak through the chair.
The devil is always in the detail, but I am glad that the Scottish Government has accepted Green proposals to fund the likes of childcare expansion with tax rises on the super-rich, including a mansion tax on million-pound homes and a charge on the 12,000 private jet flights that are taken in Scotland every year.
I have repeatedly called on the First Minister to deliver more support for the workers who face redundancy at Mossmorran, and I welcome that that proposal has been accepted. However, the Scottish Greens and trade unions have called on that funding to be conditional on guaranteed job interviews for the workers who are being abandoned by Exxon. Will the cabinet secretary confirm that the Mossmorran support grants will go only to businesses that offer those job interviews to the highly skilled workers who have just spent a Christmas wondering how they will provide for their families in 2026?
I welcome the productive discussions that the Scottish Greens had with me on the budget. The budget is better for the inclusion of Opposition asks, but the Opposition has to make those asks first.
We are pleased to support the workforce at Mossmorran and to enable the development of important economic opportunities in the area. In principle, I am supportive of Ross Greer’s suggestion, because it is important that the affected workers are the first in line for the growth and business opportunities that will arise from our investment. I am sure that the Deputy First Minister will take forward the details of that.
The question is not about how the budget passes but about what people will get out of it if it does. The Scottish Liberal Democrats are in the business of getting stuff done. We have been clear with the SNP that a conversation could be had should we see movement on our key areas of priority: fixing social care; funding our colleges; providing flexible childcare; supporting people with neurodivergence, hospices, small businesses and young entrepreneurs; and ensuring that every young person has a home of their own.
I am pleased to see that many of the Liberal Democrats’ asks feature in today’s budget, but the eyes of Scotland’s business community are also on us. It is good to see positive steps on rates relief that many, including the Liberal Democrats, have called for. However, too many businesses, particularly in hospitality and self-catering, still face choppy waters ahead. Will the cabinet secretary continue to work with me in the coming weeks to see how further targeted additional support might give more Scottish businesses the relief that they desperately need and deserve?
I thank Jamie Greene for his very positive and constructive engagement on behalf of the Liberal Democrats and for welcoming many of the responses to asks that feature in the budget. As he has recognised, my statement set out substantial support for business. I also recognise the importance of the independent Gill review of valuation methods for hospitality businesses, which the hospitality sector is very keen on. That work will continue at pace.
Of course I agree to continue to work with Mr Greene and others. As I said, we lack information on the UK Government’s intentions; it has been opaque about whether it will go further. We found out about the possible changes through the press rather than through any communication from the UK Government, which is disappointing. I reiterate the point that, if further consequentials should flow from a U-turn by the UK Government on the position in England, we would want to support the hospitality sector further. I have written to the Chief Secretary to the Treasury to ask for an urgent meeting to discuss the issue. My colleagues in Wales and Northern Ireland are also keen to do so.
I warmly welcome the 10 per cent increase in college sector funding, which is a tremendous boost for our young people and the economy, and one that the Finance and Public Administration Committee called for. The cabinet secretary has listened.
Will she confirm that the necessary funding is in place not only to purchase but to redevelop Ardrossan harbour, given that the capital allocation for Scotland’s ferry services has rocketed by 18 per cent—from £182.6 million to £215.5 million—since the autumn budget revisions?
I acknowledge Kenneth Gibson’s welcome for the additional college funding. On his substantive question, the Scottish Government is committed to Ardrossan being the mainland harbour for CalMac ferry services to Arran. The progress on the negotiations between Caledonian Maritime Assets Ltd and Peel Ports Group, which the Cabinet Secretary for Transport set out last week, is welcome, and I note that both parties are committed to confirming details of the potential purchase as quickly as possible. Our capital spending review makes provision to progress the potential port purchase and improvements. I am sure that Kenneth Gibson will welcome that, too.
As the Scottish Conservatives raised in the chamber last week, businesses across Scotland currently face increases in their rateable values of up to 400 per cent as a result of the current revaluation. Any hopes that the revaluation might be delayed or scrapped altogether have been dashed today, and the reliefs that have been announced will come nowhere close to compensating for the increases that are coming down the track. What assessment has the Scottish Government made of the number of businesses in hard-pressed sectors such as hospitality that will go to the wall as a result of the choices that the finance secretary has made?
Revaluation is an independent process, which Murdo Fraser knows full well. We understand the concerns, which is why Ivan McKee has engaged with assessors and businesses to listen to those. There is a process of pre-agreement discussion with assessors and a system of appeals, but the reliefs that I have announced today—transitional reliefs and reliefs for retail, hospitality and leisure—make up a package of £322 million to support businesses, which I would have thought Murdo Fraser would welcome.
I have also been clear that, if there is further funding for the hospitality sector from the UK Government, further Scottish Government funding will go to the hospitality sector in Scotland. Again, I hope that Murdo Fraser will welcome that.
Colleges are vital for supporting people in their learning journeys and ensuring that Scotland has the skills that our economy needs. Will the cabinet secretary say more about how her budget will support the college sector, particularly the ambitious plans that are being developed by Dundee and Angus College?
For Scotland’s colleges, the budget delivers a combined increase of £70 million in resource and capital funding, which is equivalent to a 10 per cent uplift on last year’s budget. The Minister for Higher and Further Education recently met representatives of Dundee and Angus College to discuss its ambitious proposals. The infrastructure investment plan that I am publishing today confirms that the Scottish Funding Council will continue to work closely with the college as it progresses work on the options to address its local priorities through its upcoming 10-year college infrastructure plan, which is due in the autumn of this year. It is a fantastic project that is very well run by local leaders at Dundee and Angus College.
Health and social care partnerships that are responsible for delivering social care face a funding gap of £560 million in this year alone, and the Convention of Scottish Local Authorities estimates that £750 million will be needed for next year. If the SNP is funding social care adequately, as it claims to be doing, why are lifeline care services being slashed? Why are health and social care partnerships declaring a social care crisis? Why are they funding only the most critical care, which means that people are stuck in hospital and unable to get out? Why is there a growing waiting list for care assessments? Why are essential packages of care being denied?
I ask the cabinet secretary: why are the most vulnerable people in Scotland being let down by the SNP Government?
First, the investment of more than £2.3 billion in social care delivers our commitment to increase funding by 25 per cent. In 2026-27, that commitment will be exceeded by more than £500 million, supporting an uplift to adult social care pay as well as improvements to wider terms and conditions for workers. That is part of a package for local government of nearly £15.7 billion, with freedom for authorities to set their council tax rates as they see fit. In addition to that, the Cabinet Secretary for Health and Social Care will be meeting local government representatives to discuss what further steps can be taken to address delayed discharge, particularly in relation to complex care needs.
All that work is going on, but the money that I have just talked about can be put in place only if members support the budget. The question for Jackie Baillie is: why does she find it so difficult to press her button to support the £2.3 billion of investment in social care? That is something that she will have to explain.
Tuition fees have gone up in England and Wales under Labour but, in Scotland, the SNP has protected free tuition for our students. We believe that universities should be based on the ability to learn, not on the ability to pay. I am pleased that the cabinet secretary has confirmed that the budget will continue to protect free tuition. How many students have benefited from free tuition under the SNP?
Kevin Stewart very much understands the importance of the investment that is being made in free tuition. If we do not invest in our young people, and if we saddle them with that debt, it will put people from lower-income households off going to university. I was the first person in my family to go to university, and I did so because of the supports that were in place. If I had had to face the debt that young people in England currently face because of tuition fees, I do not think that I would have gone. I will be happy to write to Kevin Stewart with the number of students who have benefited from free tuition to date.
Thousands of oil and gas jobs are lost every month, while the SNP has a presumption against new oil and gas. In the face of that jobs emergency, the SNP’s response is to allocate a pitiful £3 million to support former oil and gas workers into renewables. When will the devolved Government open its eyes to what is happening to the oil and gas sector and back our workers, who keep the lights on for families across Scotland?
One of the most important things that we have done is to demand that the UK Labour Government get rid of the energy profits levy—which Douglas Lumsden and his colleagues introduced in the first place. [Interruption.] They do not like to hear about that, because it does not suit their narrative, but we will repeat it and repeat it. The EPL was born out of the Tory UK Government.
I welcome the announcements that have made today to give the best start in life for children and families. That will benefit thousands of people in East Lothian. How will the budget continue to drive down child poverty and, in particular, increase support for families?
We have put child poverty very much at the heart of the budget and the spending review, which outlines how we will drive continued progress. That includes more than £100 million to support the delivery of a universal breakfast club offer for primary school-aged children and increased investment in wraparound childcare through the school day.
In addition to our £50 million-a-year package of whole-family support and continuing to increase our Scottish child payment in line with inflation, we have committed to developing the systems and legislation to increase the Scottish child payment to £40 for children under the age of one.
There are adults working in Wales today who benefited from free breakfast clubs two decades ago, as the Welsh Labour scheme has been up and running since 2004. The UK Labour Government began rolling out free breakfast clubs in all state schools within a year of taking office, and it has boosted funding for after-school clubs in England to support the most isolated children.
I, of course, welcome the Scottish Government following in the footsteps of those Administrations today, even if it has taken almost 20 years because of the Scottish Government’s own cuts to local authorities and schools. However, given that it had additional money from the UK Government, if the Scottish Government cared so much and was so convinced of the benefits of the policy, that begs the question why it has taken this Government so long. The answer can surely only be that it is out of energy and out of time and that it needs to get out of the way of a Government that will do the hard work of delivering.
It is really interesting how Paul O’Kane and Labour like to cite Welsh Labour when it suits them but, when it does not, they are very quiet on the matter. Apparently, it is all about what happens here in Scotland—until it suits them to say otherwise.
On early learning and childcare, the Scottish Government was further ahead with its investments. The Scottish child payment—which is not, of course, available in Wales or England—is literally putting food on the tables of families. That leads to the fact that Paul O’Kane cannot escape, which is that Scotland is the only part of these islands where child poverty is falling. We will take no lessons from Paul O’Kane or anyone else on how to tackle child poverty, because we are doing it and the facts speak for themselves.
It is welcome that the SNP Scottish Government’s progressive approach to taxation means that there is more funding available to support our vital public services, by asking those with the broadest shoulders to pay a little bit more, while protecting low-income households in Scotland. However, many powers over taxation remain reserved to the UK Government. Will the cabinet secretary give any indication as to how the budget will start to explore the use of wealth taxation within the limited powers of the Scottish Parliament?
As we have said, we will continue to look at taxation, whether that is land value taxation or wealth taxation. Those things are not straightforward, particularly within the limits of our current fiscal powers, which is why I want a more fundamental review of the fiscal framework. Having the ability to establish new powers on areas such as wealth taxation would be important. That work is at a very early stage, but I am happy to keep Jackie Dunbar apprised of progress.
In the budget, there was an increase in the total spend on concessionary fares and bus services, yet we know that large parts of Scotland are very poorly served, if at all, by public transport. We are all aware of the recent decision taken by Stagecoach to significantly reduce its bus services in Dumfries and Galloway. In her statement, the cabinet secretary said that public services should be accessible where and when they are needed. If there are no buses available, a bus pass becomes absolutely worthless. If the SNP is serious about tackling inequalities across Scottish communities, it would surely have been wiser to use that money to fund a specific rural bus fund.
We want to ensure that public transport is available as far as possible to all communities in Scotland. Transport Scotland is working with rural and other communities on public transport commitments. However, I say to Sue Webber that, with tax cuts of £1 billion, there would be less money for bus services or for the expansion of bus routes anywhere; there would be less money and not more for those things. As I said at the beginning—[Interruption.]
Let us hear the cabinet secretary.
We cannot have Tory back benchers coming here asking for more money when their front-bench members would cut that money through £1 billion of unfunded tax cuts.
It is vital that we press forward with work to support our town centres so that they can become more sustainable and thriving places for people to live, work and enjoy. Will the cabinet secretary say more about how the budget will support the regeneration of our town centres via affordable housing and other measures that can help to turn around the fortunes of our high streets?
Supporting the delivery of 36,000 affordable homes and our wider all-tenure ambition, we plan to invest up to £4.9 billion over the next four years, of which £4.1 billion will be public investment. We are working with partners, including the Scottish National Investment Bank, to leverage additional private investment.
I think that there is a real opportunity to use affordable housing resources to regenerate our town centres, which are changing because of the way in which people have changed their shopping habits. That means that we really want to get people back into living in some of our town and city centres, and affordable housing can play an important role in achieving that.
The cabinet secretary has repeated the claim that child poverty is at a 30-year low, but she should know that that is not the case for children in relative poverty, that the 2023-24 interim target was missed and that the Government is not on track to meet the 2030 legal target.
Table 5.07 of the budget shows that the budget for Social Security Scotland is set to go up by a third, which is an increase of some £125 million and is more than the sum of the resources freed up by the UK Government’s decision to scrap the two-child benefit, an issue that much of the debate about using this budget to tackle child poverty has focused on. How is that increase justified?
On the issue of children living in relative poverty, that is why we have focused so much of our effort, resources and policy on tackling child poverty. Shirley-Anne Somerville will set out the next child poverty delivery plan in March, and that will include a raft of measures to give us the best chance of hitting that relative poverty target, which this Parliament signed up to.
I hope that Claire Baker, who feels so strongly about the issue, and given the measures in the budget to tackle child poverty, will find a way to support the budget and the resources that are included in it, rather than just sitting on her hands.
I welcome the continued investment in the Scottish National Investment Bank as a key enabler of economic growth. The detail in the budget shows that the bank can now reinvest income received. Can the cabinet secretary confirm whether the Treasury rules for that bank are now the same as those for the British Business Bank? Just as important, can she confirm whether the restrictions set by the Scottish Government regarding underspends at the end of any financial year have also been removed?
Michelle Thomson will be well aware of some of the very welcome changes that were made to the fiscal framework that will enable a flow of resources into the next financial year. The work that we have done to ensure prudent management of finances means that we are able to pass money through into the reserve and can also reduce the use of ScotWind income, which is one of the few flexible resources available to us.
Michelle Thomson will also be aware of the limitations of the fiscal framework, which I referred to earlier. That is why I want to negotiate something far more ambitious, which is a subject that I have raised with the Chief Secretary to the Treasury on a number of occasions.
Five years ago, the First Minister stated:
“If we are re-elected in May, the SNP will roll out a new programme to deliver into the hands of every school child in Scotland a laptop, Chromebook or tablet to use in school and at home.”
Five years on, that election pledge is nowhere near being delivered. Will the cabinet secretary tell me how much money there will be in the budget to deliver that election pledge in the 100 days that the Government has left to do so? If it does not deliver, why should any young person or parent believe a word that the SNP tells them in May?
I say to Miles Briggs that this Government has invested in our schools, in our teachers and in local government so that they can provide the education resources that are required. We have invested in the pupil equity fund, which enables headteachers to use some of the discrete purchasing options that they have. If they wish to use those resources to support young people who would otherwise struggle to have one of those devices, those resources can, of course, be used for that.
It is a bit rich for Miles Briggs to come here and talk about any of those things because his £1 billion cut to public services would not only prevent the delivery of anything additional in our schools; it would impact on school budgets and there would be swingeing cuts to local government and the NHS. Miles Briggs knows that full well.
We were disappointed that the Scottish Government did not find the funding to roll out truly free at three early years childcare, which the Scottish Greens and organisations such as Pregnant Then Screwed asked for. However, we also discussed wraparound provision and more free meals for schoolchildren, and we are glad that those proposals have been accepted. Can the cabinet secretary confirm who will be eligible for the breakfast clubs? Will they be free for every child? If not, how many children will they benefit?
Gillian Mackay’s first point was about the childcare provisions that she asked for, which we are not able to meet at this time due to cost implications. As I said to Ross Greer in some of those discussions, we need a wider review of the delivery models for childcare to ensure that there is more flexibility and that we can extract better value from the investments that are being made. However, that is a longer-term issue that this Parliament will have to look at.
I am glad that Gillian Mackay welcomes the wraparound provision.
The roll-out of the breakfast clubs will start this year with £15 million of investment and it will tick up next year, in 2027-28, to ensure that every primary school child and children in special schools are able to get that breakfast offer on a universal basis. I am happy to provide further details to Gillian Mackay.
Thanks to the consistent pressure from the SNP, the Labour UK Government finally scrapped the two-child limit in its autumn budget. Can the finance secretary say more about how the money that would otherwise have been spent on mitigating the two-child cap will now be deployed to this Government’s key mission of tackling child poverty?
As I set out in my statement, we have reallocated funding that was committed to mitigating the two-child limit to drive further progress on child poverty. In the year ahead, that includes investing £15 million to meet additional demand for devolved benefits, including a further £8 million to mitigate the benefit cap. We will also further strengthen support by increasing our Scottish child payment in line with inflation to £28.20 from April, committing more than £111 million to our tackling child poverty fund and providing a new package of whole-family support, with further detail of the investment to be set out in the delivery plan by the end of March.
Social security spending now accounts for around 14 per cent of the budget. Scotland spends significantly more than it receives, which adds hundreds of millions to the benefits bill. Which public services is the cabinet secretary taking money from in order to fund the Scottish Government’s bloated benefits bill? Can she seriously tell the public that the Government’s plans to spend more and more on the benefits bill are sustainable?
In turn, I ask Alexander Stewart which groups of people the Conservatives would remove help from, because they never tell us that. They use euphemisms and say that the social security bill is too high, but they do not have the guts to tell us who would lose out—not now, and not ever. Until we hear that, they cannot be taken seriously at all. [Interruption.]
Let us not be shouting at one another.
The updated SFC forecast shows a substantial reduction in the Scottish Government’s benefits investment over and above block grant adjustments received from the UK Government, largely resulting from the UK Government’s welcome but belated reversal of the unacceptable cuts to disability benefits, which was announced on 3 July 2025.
The funding that we expect to receive through the social security block grant adjustments now covers 87 per cent of the forecast expenditure for 2026-27. That figure will increase to 88 per cent for 2027-28 onwards and is forecast to reach 89 per cent in 2030-31. That is perhaps not quite in line with the narrative that Alexander Stewart would like to give out.
The cabinet secretary will be aware that I have campaigned for the introduction of universal swimming lessons for primary school pupils for a long time, so I am absolutely delighted to hear that that is provided for in the budget. Given the benefits to physical and mental health and wellbeing of being active, will the cabinet secretary outline how swimming lessons for all will help us to achieve our aim of Scotland being an active and water-safe nation? Looking to the future, how does she envisage that the programme will be evaluated?
I welcome and acknowledge Fulton MacGregor’s history of and tenacity in raising the issue. We are very pleased to be able to make that offer to young people as part of the summer of sport. It is important for not just physical activity but safety. I would be happy to keep Fulton MacGregor up to speed with the development and roll-out of that important initiative.
Before the budget statement, certain hospitality businesses faced huge rates increases of 300 to 400 per cent. Given the huge scale of such increases, a 15 per cent discount means that they will still face a huge increase in their rates bills. Why has the Scottish Government not decided to use its powers over assessors to pause the revaluation and introduce a fairer assessment for hospitality businesses?
In England, because of the loss of the 40 per cent relief for retail, hospitality and leisure, the effective relief is now 10 to 12 per cent. The 15 per cent RHL relief in Scotland is, therefore, competitive in comparison—[Interruption.]
Let us hear one another.
In my budget, I have set out more than £320 million of support through transitional relief and RHL relief, through our passing on the vast bulk of consequentials for business that we have received. To go further, we would have to take money from other areas of the budget, and I was loth to do so. Daniel Johnson is always welcome to suggest such areas. [Interruption.]
Thank you.
However, if the UK Government follows through on what it has briefed to the media about additional support for hospitality, which would result in further consequentials, we will look to further support the hospitality sector in Scotland. I have given that commitment several times this afternoon.
We are two thirds of the way through the time that has been allotted for questions but have not yet reached half of those who would like to put a question. I would be grateful for concise questions and responses and for the ability for us to hear one another.
All will appreciate the budget’s support with the cost of living during what is such a financially challenging time for so many people. My constituency has some of the highest fuel poverty rates in the country. Will the cabinet secretary outline what specific support is included in the budget for those in rural and island areas who struggle with rising bills?
I am deeply aware that island communities continue to face some of the highest fuel poverty levels in Scotland. The budget continues support for the islands cost crisis emergency fund, which, since 2022, has distributed £4.4 million to support vulnerable households, including £1.1 million for Western Isles Council. In addition, through area-based schemes, we have invested more than £13 million in the Western Isles since 2013, helping 3,500 fuel-poor households to make their homes warmer. This budget will continue to advance social and economic prosperity in our islands, in line with our new national islands plan.
Although an uplift to the housing budget is welcome, the cabinet secretary knows that encouraging private investment is key to solving Scotland’s housing crisis. It is interesting that, in her statement, there was little to no mention of the housing emergency, given that a housing emergency has been declared by the Parliament.
The cabinet secretary talks a good game about attracting investment to deliver more homes, but policies such as rent controls and the proposed building safety levy threaten to put additional pressure on the private sector. How will today’s budget support the private house building sector? Will the cabinet secretary commit to eradicating punitive taxes that will make it more difficult for the sector to build the homes that we in Scotland desperately need?
Given the £4.9 billion investment in affordable housing, I do not think that we can be accused of ignoring the housing emergency. Over the course of the spending review, that is a massive investment—and, as we have been clear, £800 million of it will come from the private sector.
A lot of work is being done around mid-market rent and build to rent to make sure that the private sector is working in partnership with us to grow that pot to the extent that it can in order to meet the needs of the people of Scotland. That work is going well and I am sure that Meghan Gallacher will want to welcome that.
I am pleased to hear that the SNP’s Scottish budget will deliver record funding for our NHS. How will that level of investment in health from the Scottish Government impact on the delivery of vital services across Scotland? Will the cabinet secretary join me in calling on Opposition members across the chamber to get off the fence and back the budget so that we can provide our NHS with the funding that it deserves?
George Adam is absolutely right to welcome the funding of £22.5 billion for the portfolio, which includes £17.6 billion for NHS boards, £2.3 billion for social care and integration and more than £2.4 billion for primary care. All that funding is about meeting the people’s priorities, which we know the NHS is doing with that investment, but it is also about the transformation of services. Neil Gray, the health secretary, has set out some ambitious plans for transformation to ensure that as much of that money as possible goes to the front-line services.
In documents that the Scottish Government was forced to release under freedom of information, it has been disclosed that Transport Scotland advised the First Minister and other ministers three years ago, in 2023, that there would be no money for the Nairn bypass during this session of Parliament. More than that, the position in the next five years would be “equally challenging”. I have a very simple question for the cabinet secretary that requires honesty and candour for my constituents in Nairn. Will the Nairn bypass be constructed and operational by the end of this decade—2030—yes or no?
Let me say a number of things. First, the Scottish Government’s position has not changed in that we remain in support of the full dualling of the A96 and are progressing the dualling process from Inverness to Nairn, including the Nairn bypass. I can confirm today that investment in the trunk road network in the next four years will allow us to make progress on dualling the A96 between Inverness and Nairn, including the Nairn bypass. With the land acquired for the project, funding is included in the 2026-27 draft budget to commence the delivery of advance works for the scheme, along with the adjacent A9 and A96 Inshes to Smithton scheme.
In parallel to the advance works, Transport Scotland continues to take forward the work to determine the most suitable procurement option for delivering the scheme and, therefore, a timetable for delivery. The Cabinet Secretary for Transport has given a commitment to update Parliament when that work has concluded.
Let me be clear: there is funding—
Briefly, cabinet secretary.
—for the A96 Inverness to Nairn in the budget and across the CSR in 2026-27, 2027-28, 2028-29 and 2029-30, which I hope Fergus Ewing will welcome.
Just last month, the Scottish Government announced £300,000 of funding for Cumbernauld theatre, along with £100,000 from Creative Scotland. Will the cabinet secretary set out what opportunities arise out of this year’s budget for continued support for the theatre and, indeed, for the wider culture sector in Scotland?
I am very pleased to have been able to confirm an additional £20 million for the culture budget and to continue to deliver on our commitment to increase culture spending by £100 million. The cumulative increase is now £70 million since 2023-24 and it supports a wide range of measures across this key sector.
As the member says, we have committed £150,000 to Cumbernauld Theatre Trust in 2026-27, with a further £150,000 in 2027-28, which is subject to progress being made by the trust to enhance its financial sustainability.
A fortnight ago, the Citizen Participation and Public Petitions Committee brought a debate to the chamber with all-party support on the importance of swimming, given the background of Scotland having the highest accidental death by drowning rate of any part of the United Kingdom. I join Fulton MacGregor in welcoming the commitment that all children should be able to enjoy swimming lessons, but I ask for clarification. Is that a one-year commitment or a long-term commitment? Secondly, in the face of Scotland’s golden athlete Duncan Scott commenting on the catastrophic reduction in the infrastructure of swimming pools across Scotland, is there anything in the budget that will halt or reverse that decline? A commitment to swimming lessons requires pools for people to be trained to swim in.
I welcome Jackson Carlaw’s welcome for the initiative. Initially, it is a one-year commitment, but it will depend on how that goes and the progress on the roll-out. However, we are determined that this summer will be an opportunity for every young person who wants to learn to swim to take up the opportunity. Who knows? Out of that, we may see other young people following in Duncan Scott’s footsteps. He sets a fantastic example.
The infrastructure of pools is an issue primarily, but not exclusively, for local government. We have supported the local government settlement over a number of years to enable local government to provide the services that local people require.
I am grateful for the cabinet secretary’s engagement on the budget. Unlike my former Conservative colleagues in Lothian, I am glad that I have been able to negotiate money for disabled charities, changing places toilets and the King’s theatre. Does the cabinet secretary agree that not only are changing places toilets good for individuals and families but the economic benefit that they bring to groups, charities and organisations is good for Scotland and for the local economy?
I thank Jeremy Balfour for his constructive and pragmatic engagement ahead of the budget. What a contrast to his former colleagues, as he said. He has been getting things done and working with others to get things for local communities. My door has been open but, unfortunately, Craig Hoy and his colleagues have not come through it with any constructive suggestions whatsoever.
Jeremy Balfour made a compelling case that funding should not only continue for our changing places toilet programme but be spread over multiyear periods to allow for planning and delivery of the schemes. As a result, we will provide an additional £10 million of funding over three years, starting with £3 million of investment in 2026-27. Those facilities, which have been championed by Jeremy Balfour, will provide greater freedom to people with profound disabilities and complex needs, enabling them to access community resources more easily.
Concise questions and responses would be appreciated.
I remind members of my entry in the register of members’ interests, which shows that I hold a bank nurse contract with NHS Greater Glasgow and Clyde.
Last week, welcome figures were published that showed that, through action from the SNP Government, long waits in the NHS have decreased for six months in a row, with significant year-on-year increases in activity. How will the budget assist in the on-going recovery of Scotland’s NHS?
The budget’s investments in the NHS are absolutely critical. As Clare Haughey pointed out, we have made significant progress against the commitments in the operational improvement plan for this year. We will continue to build on that progress through the investment of a further £100 million in 2026-27 and through scaling the productivity and efficiency gains to create additional capacity.
This is critical to the people of Scotland. We know that the NHS is the key issue. We have made great progress over the past six months in bringing down long waits, and we want to continue that to ensure that people get their treatments, particularly the hip, knee and eye operations that people have been waiting for, as quickly as possible. That investment will help to deliver that.
Scotland’s firefighters are demanding urgent funding to end the SNP’s decade of dangerous underinvestment, which has cut one in six firefighters since 2013—that is 1,250 posts—and delivered a real-terms reduction of £84 million in the fire and rescue resource budget. Will the cabinet secretary explain why her budget does not reverse those cuts and why it fails to fix the £800 million maintenance backlog relating to our fire stations, equipment and ageing vehicles, which are vital to protecting Scotland’s people, environment and infrastructure against fire, flood and storms?
We have allocated almost £436 million to the Scottish Fire and Rescue Service in 2026-27—an uplift of 5.4 per cent. We will increase the SFRS capital budget to £48.4 million to ensure that it can develop its asset base across property, fleet, operational equipment, and information and communications technology. The continued resource and capital investment will support the SFRS in its ambition, through its strategic service review programme, to better align resources with current and future risks and to continue to keep our communities safe, for which I thank the service.
The Government has already disgracefully cut 1,000 police officers from Scotland’s streets. Police Scotland asked for £104 million simply to stand still and stop numbers falling further, yet the SNP budget delivers far less than that. How does the finance secretary justify choosing a budget that means fewer police numbers, overstretched officers, slower response times and compromised public safety?
We have allocated more than £1.7 billion for policing in Scotland in 2026-27—an uplift of 5 per cent. That includes an additional £59 million of resource to the Scottish Police Authority to maintain capacity and capability in policing. We are increasing police capital funding to £86.3 million to invest in essential infrastructure technology and continue the delivery of the SPA’s estates masterplan. We are also putting in £3 million to continue tackling retail crime.
However, all that is put at risk by Sharon Dowey’s support for £1 billion of tax cuts. None of that funding would be possible—[Interruption.]
Thank you.
—if we were to cut taxes by £1 billion. All of it would go—police funding, college funding, NHS funding and local government funding—so the hypocrisy from Tory back benchers in asking for more money is incredible and they will have no credibility whatsoever with the public.
The cabinet secretary will be aware that I led a campaign locally seeking extra funding for the college sector, in particular in relation to the continued existence of the Alloa campus of Forth Valley College. My constituents will be absolutely delighted by the Government announcement today of a 10 per cent increase in funding. They will be absolutely appalled, however, to find out that the Labour Party never asked for a penny for colleges, and that it intends not to vote for the 10 per cent increase.
Will the cabinet secretary confirm that, having made that fantastic announcement of a 10 per cent increase, she has no reason to expect that the Scottish Funding Council and Forth Valley College will not now play their part in ensuring the continued, long-term sustainable future of the college’s Alloa campus?
Keith Brown is right that the 10 per cent uplift in funding for colleges will allow Forth Valley College to make strategic spending decisions in the interests of the communities that it serves, as soon as the Scottish Funding Council has confirmed allocations. The Minister for Higher and Further Education will chair a meeting in Alloa with FVC, the Scottish Funding Council, businesses and trade unions later this month to discuss matters.
A decision about the Alloa campus is ultimately a matter for the board of the college; nevertheless, my view is that the campus is valuable to the community and should remain open, and I hope that the resources that are being made available will make that more likely.
Liberal Democrats asked for support for neurodevelopmental assessments for children and young people and we are pleased that that is in the budget. However, I want to ask the cabinet secretary about the construction of special schools, because some of the special schools in my part of the world are the worst schools in that area, and they deserve improvement.
I ask the cabinet secretary to come with me and visit the schools in Buckhaven and Cupar to see for herself why it is essential that the review is conducted and that it results in new buildings.
The infrastructure investment pipeline sets out a number of commitments, one of which is the next phase of the learning estate investment programme, or LEIP. That programme has involved a very successful funding model of shared costs between the Scottish Government and local government, and it has delivered, with the number of schools in a good condition going from 62 per cent to 93 per cent. A lot of progress has been made.
It is clear, however, that some schools still require attention. I say to Willie Rennie that we are keen to think about the role of special schools in the new phase of LEIP, and we will continue to work with local authorities, including Fife Council. I am sure that he will be kept apprised of that work, and that education ministers will be happy to visit some of the schools in his patch.
According to an Economy and Fair Work Committee investigation, Scotland has the highest level of disability unemployment in the UK. Would it not be prudent to tackle that issue by helping those who can and want to work back into work? That is surely the way to reduce the social security bill.
I hoped that Brian Whittle might have welcomed the summer of sport—I know that that is an area of interest for him and that he has asked questions about it previously—but I am sure that he will do so in due course.
On the issue that Brian Whittle raised, we have safeguarded £90 million of funding for employability services, but we will go further than that through the work that we will do with colleges. We were really impressed with the proposals that Colleges Scotland set out on how to support people back into work. That includes people with additional needs, who will find colleges a less threatening environment in which to take part in some employability and skills programmes. I am excited to see how those programmes develop with the college sector and how they will help us to support people back into employment.
Community justice services play a hugely important but, sadly, often unrecognised role in the rehabilitation of offenders and in reducing recidivism. In turn, they make a significant contribution to the Scottish Government’s priorities of supporting families, promoting wellbeing and eradicating child poverty. Will the cabinet secretary reaffirm that the budget will maintain the level of support that is required to deliver sustainable and meaningful community justice services across Scotland?
Yes. We recognise the value of community justice. In the budget, community justice funding will increase by £10 million to a record £169 million. That builds on the £25 million of additional investment that has been made over the past two years. Expanding alternatives to custody, such as diversion and community sentencing, has been proven to be very successful in reducing reoffending.
Normally, when we face an emergency, we put aside good things to focus on that emergency. If we really have a housing emergency, should we not set aside some of the expenditure on, for example, roads and put more money into housing?
We are putting more money into housing. Over the spending review period, there will be investment of £4.9 billion, £4.1 billion of which will be public investment that will lever in at least a further £800 million of private sector investment in, for example, mid-market rent properties and build to rent schemes. That will all contribute to the delivery of affordable homes, so I hope that John Mason will welcome that.
That is one of the biggest capital investments across our capital funding programme. Given that our capital funding will, unfortunately, be reduced after this year, due to the UK Government’s spending review, the marshalling of the capital resources that are available to us to prioritise affordable housing is quite a commitment.
Scotland has always taken its international responsibilities very seriously indeed, and we have a proud tradition of supporting those in need. That is reflected in the Government’s ambitions on climate justice and reparations. What provision does the budget make for the funding of international development, particularly regarding issues connected to climate justice?
As I said in my statement, I was very pleased to be able to increase funding for international development. That says a lot about this Government’s values, which are in tune with the values of the Scottish people. I find it quite difficult to understand the hostility of Tory members to increasing investment in international development, because such investment in ensuring sustainable communities, particularly in third world countries, contributes to making the world safer. Helping those communities to help themselves represents a good investment, and it is one that we are proud to make.
I declare my interest as a practising solicitor.
The Scottish Courts and Tribunals Service warned that, without a £40 million baseline uplift, trials will be delayed and that some will take more than two years to conclude. The budget will deliver an uplift of £4.2 million, which is a tenth of what is needed. What advice does the cabinet secretary have for victims of crime who are waiting more than two years for justice?
Under Liam Kerr’s plans, that budget would be cut because there would be £1 billion less to spend on public services. Members on the Tory benches cannot come to the Parliament and ask for more money when they want to cut investment in public services by £1 billion.
I have met the Lord President and we discussed the requirements of the Scottish Courts and Tribunals Service, and we will continue to discuss those matters. However, the investments that we are making across the justice system will ensure that people receive justice in a timely manner—that is what the Government is focused on.
I welcome the budget, which shows that Scotland is in safe hands with this SNP Government. In comparison to previous disastrous Westminster Governments, this Government is putting the most vulnerable at the heart of its budgetary decisions.
What will the budget do for rural communities and our rural economy, particularly against a backdrop in which Westminster has slighted our rural communities?
There will be substantial investment in our rural communities. That includes continuing the work to support our agricultural sector and also investment for peat restoration and forestry. Those are important investments, not just for local economies and jobs but for our climate ambitions. In addition, some ambitious agreements are being worked on with our island communities, such as the accelerator model for Shetland, Orkney and the Western Isles, which has the potential to lever in hundreds of millions of pounds of investment. Again, I am happy to keep the Parliament updated on those developments.
That concludes the ministerial statement. There will be a short pause before we move to the next item of business.