Tax and spending plans to be revealed in Scottish Budget

"The Scottish government is to announce its draft Budget for 2026-27. Ahead of her speech in Holyrood, Finance Secretary Shona Robison warned she had to make "tough" decisions to balance the tax and spending plans. She will set the annual funding for Scotland's health, education, transport, welfare and justice systems, as well as any tax changes. The announcement comes just four months before the Holyrood election, with the SNP aiming to be re-elected to government to fulfil the budget plans."

"The SNP does not have a majority in parliament, meaning the government will have to rely on opposition MSPs either abstaining or supporting the Budget for it to pass into law. It has been speculated that Scottish Labour could abstain - which would ensure that the Budget bill passed - after leader Anas Sarwar said his MSPs would not make the Budget fall. Robison said she had held "constructive" talks with some parties, but accused the Tories of proposing 1bn of unfunded tax cuts."

The Scottish government will publish its draft Budget for 2026-27, allocating annual funding for health, education, transport, welfare and justice and deciding on tax changes. Finance Secretary Shona Robison has framed the plans as requiring tough choices to balance tax and spending and to make the most of available resources. Priorities include investing in the NHS, lowering cost of living, boosting the economy and addressing the climate crisis. The SNP lacks a parliamentary majority and will need opposition MSPs to abstain or support the bill to secure passage. Forecasts add £750m overall but reveal an estimated £1bn capital budget shortfall.

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