Chamber and committees

Scotland House London is a unique collaboration between the Scottish Government, Scottish Development International, VisitScotland and Scotland Food & Drink, and provides a platform to showcase Scotland’s unique offer to key domestic and international audiences. The facility also provides a home in London for a range of Scottish businesses and organisations seeking to develop relationships, engage new markets and explore opportunities to succeed and grow.

Whilst the overall budget for SHL increases from £2.095m in 2025-26 to £4.111m in 2026-27 (a 96.2% rise), this increase is almost entirely due to a one-off capital charge of £2.019m required to extend the SHL office lease to November 2029. Importantly, the annual resource costs have not increased and remain at £1.660m. This is an accounting requirement. The cash lease payments will continue to be made over the 3 year period of the lease in the normal way.

Under International Financial Reporting Standard(IFRS) 16, long-term leases must be recognised as assets on the Scottish Government’s balance sheet. The total lease payments for the full three-year extension period amount to £2.019m. In accordance with IFRS 16, this full value must be recognised upfront as a right-of-use asset and corresponding lease liability in the Scottish Government’s Consolidated Accounts.

As required by HM Treasury rules, this results in £2.019m of capital budget cover being needed only in the year the lease is extended (2026-27). This is a single-year requirement only, covering the entire period to 2029, and therefore will not recur in future years’ budgets. This short-term extension to the current lease arrangements for SHL has been made to allow Ministers of the incoming administration, following the 2026 Scottish Parliament election, to take decisions on the Scottish Government's presence in London in the longer term.