Report on the Scottish Budget 2026-27

PDF Published: Thursday 05 Feb 2026 (FPAS062026R3)

Expand
Overview
Report

Hide

Hide

Overview
Report
- Introduction
  - UK context
  - Scottish context
    
    Economic and fiscal outlook
- Scottish Budget 2026-27
  - Taxation plans
    
    Income tax
    
    Council tax
    
    Other taxes
  - Spending plans
    
    Overview
    
    Local authority funding
    
    Social security spending
- Scottish Government’s approach to financial planning
  - Prioritisation
  - Transparency
    
    Baselining in-year transfers
    
    Public Private Partnership funding
    
    New money?
  - Use of flexibilities
    
    ScotWind funds
    
    Bonds
    
    Fiscal framework
  - Long-term financial planning
- Scottish Spending Review
- Public service reform
  - Overview
  - Portfolio Efficiency and Reform Plans
  - Integrated Pay and Workforce Policy
- Infrastructure Delivery Pipeline 2026
- Scottish Parliamentary Corporate Body: Budget Proposal 2025-26
  - Overview
  - Reform and prioritisation
  - Scottish Parliamentary staff pay and related costs
  - MSP pay and Staff Cost Provision
  - Major projects
  - Election Programme
  - Officeholders
  - Income
  - Conclusion
Sources

Scottish Parliamentary Staff Pay £44.3 million; Scottish Parliamentary Staff Related, Property and Running £19.7 million; MSP Expenses £31.7 million; MSP Pay £15.9 million; Officeholders £24.8 million; Projects £6.5 million; Election Contingency £6.0 million

Image: Budget bid by spending area

Scottish Government. (2026, January 13). The Scottish Budget 2026-27. Retrieved from https://www.gov.scot/publications/scottish-budget-2026-2027/

Scottish Fiscal Commission. (2026, January 13). Scotland’s Economic and Fiscal Forecasts – January 2026. Retrieved from https://fiscalcommission.scot/publications/scotlands-economic-and-fiscal-forecasts-january-2026/

Office for Budget Responsibility. (2025, November 26). Economic and fiscal outlook – November 2025. Retrieved from https://obr.uk/efo/economic-and-fiscal-outlook-november-2025/

Scottish Government. (2026, January 13). Scottish Spending Review 2026. Retrieved from https://www.gov.scot/publications/scottish-spending-review-2026/

Scottish Fiscal Commission. (2025, April). Fiscal Sustainability Report. Retrieved from https://fiscalcommission.scot/wp-content/uploads/2025/04/Publication-April-2025-Fiscal-Sustainability-Report.pdf

Scottish Parliament, Finance and Public Administration Committee. (2025, October 30). Pre-budget 2026-27 report: responding to long-term fiscal pressures. Retrieved from https://bprcdn.parliament.scot/published/FPA/2025/10/30/ce65ab4c-e4df-4098-ac96-0e212397060d/FPAS062025R11.pdf

UK Government. (2025). UK Budget 2025. Retrieved from https://www.gov.uk/government/publications/budget-2025-document/budget-2025-html

Institute for Govermment. (2025). The benefits of having only one OBR forecast a year increasingly outweigh the costs. Retrieved from https://www.instituteforgovernment.org.uk/comment/imf-obr-single-forecast

Scottish Parliament, Finance and Public Administration Committee. (2026). Official Report, 13 January 2026. Retrieved from https://www.parliament.scot/api/sitecore/CustomMedia/OfficialReport?meetingId=16794

Fraser of Allander Institute. (2025, November 26). UK Budget 2025 reaction: Meeting the (briefed) expectations. Retrieved from https://fraserofallander.org/budget-2025-reaction-meeting-the-briefed-expectations/

Scottish Parliament, Finance and Public Administration Committee. (2026, January 20). Official Report . Retrieved from https://www.parliament.scot/api/sitecore/CustomMedia/OfficialReport?meetingId=20025

Scottish Parliament . (2026, January 16). Written submission, Professor David Heald, University of Glasgow. Retrieved from https://www.parliament.scot/-/media/files/committees/finance-and-public-administration-committee/correspondence/2026/budget_profdavidheald_16jan26.pdf

Scottish Government. (2026, January 13). Cabinet Secretary for Finance's Statement to the Scottish Parliament on the Scottish Budget 2026-27. Retrieved from https://www.gov.scot/publications/scottish-budget-2026-2027-finance-secretarys-statement-13-january-2026-2/

Fraser of Allander Institute. (2026, January 15). Scottish Budget - day 3 reaction. Retrieved from https://fraserofallander.org/budget-day-3-reaction-council-tax-the-spending-review/

Institute for Fiscal Studies. (2026, January 13). Immediate response to the Scottish Budget 2026-27. Retrieved from https://ifs.org.uk/articles/immediate-response-scottish-budget-and-spending-review

COSLA. (2026, January 13). Letter from COSLA to Cabinet Secretary for Finance on the Scottish Budget 2026-27. Retrieved from https://www.cosla.gov.uk/news/2026/january/cosla-resources-spokesperson-writes-to-cabinet-secretary-for-finance-and-local-governmen

Scottish Parliament, SPICe. (2026, January 16). Briefing on the Scottish Budget 2026-27. Retrieved from https://www.parliament.scot/chamber-and-committees/research-prepared-for-parliament/research-briefings/2026/1/16/sb-2604

Local Government Information Unit. (2026, January 8). 2025 State of local government finance in Scotland. Retrieved from https://lgiu.org/publication/2025-state-of-local-government-finance-in-scotland/

Scottish Government. (2026, January 13). Response to Finance and Public Administration Committee's Pre-budget 2026-27 Report. Retrieved from https://www.parliament.scot/chamber-and-committees/committees/current-and-previous-committees/session-6-finance-and-public-administration-committee/correspondence/2026/report-on-prebudget-scrutiny-202627-scottish-government-response

Scottish Government. (2026). Strengthening ties between Scotland and City of London. Retrieved from https://www.gov.scot/news/strengthening-ties-between-scotland-and-city-of-london/

Scottish Parliament, Finance and Public Administration Committee. (2025, December 19). Letter to Scottish Government on soope of the fiscal framework review. Retrieved from https://www.parliament.scot/-/media/files/committees/finance-and-public-administration-committee/correspondence/2025/ff_convenertocabsecflg_19dec25.pdf

Scottish Parliament, Finance and Public Administration Committee. (2026, June 19). Scottish Budget Process in Practice. Retrieved from https://bprcdn.parliament.scot/published/FPA/2025/6/19/731830a0-9fa6-4046-80dc-752b7e6fa07c/FPAS062025R8.pdf

Scottish Parliament, Finance and Public Administration Committee. (2024, November 7). Pre-budget 2025-26 Report: Managing Scotland's Public Finances - A Strategic Approach. Retrieved from https://bprcdn.parliament.scot/published/FPA/2024/11/7/7a9b9ed9-734c-4731-9864-a671799cf8a2-1/FPA062024R9.pdf

Scottish Government. (2025, June). Public Service Reform Strategy: Delivering for Scotland. Retrieved from https://www.gov.scot/publications/scotlands-public-service-reform-strategy-delivering-scotland/

Scottish Government. (2026, January 13). Integrated public sector pay and workforce policy. Retrieved from https://www.gov.scot/publications/scottish-budget-2026-2027-integrated-public-sector-pay-workforce-policy/

Scottish Government. (2026, January 13). Infrastructure Delivery Pipeline 2026. Retrieved from https://www.gov.scot/publications/infrastructure-delivery-pipeline-2026/

Scottish Government. (2026, January 13). Consultation on Infrastructure Strategy 2027-2037. Retrieved from https://www.gov.scot/publications/consultation-infrastructure-strategy-2027-2037/

Scottish Parliament, Finance and Public Administration Committee. (2025, December 18). Paper 1 - Budget Scrutiny 2026-27 - SPCB - Note by the Clerk (965KB, pdf). Retrieved from https://www.parliament.scot/~/media/committ/12035/Paper-1--Budget-Scrutiny-202627--SPCB--Note-by-the-Clerk

Scottish Parliament, Finance and Public Administration Committee. (2026, January 6). Official Report. Retrieved from https://www.parliament.scot/chamber-and-committees/official-report/search-what-was-said-in-parliament/FPA-06-01-2026?meeting=16779

Scottish Parliament, Finance and Public Administration Committee. (2025, January 29). Budget Scrutiny 2025-26. Retrieved from https://bprcdn.parliament.scot/published/FPA/2025/1/29/5cf34751-cca7-4ef4-8a6a-8d79a43fd322-1/FPAS062025R2.pdf

Scottish Parliament, Finance and Public Administration Committee. (2025, January 29). Report on Scottish Budget 2025-26. Retrieved from https://bprcdn.parliament.scot/published/FPA/2025/1/29/5cf34751-cca7-4ef4-8a6a-8d79a43fd322-1/FPAS062025R2.pdf

Scottish Parliament, Finance and Public Administration Committee. (2025, June 19). Report on the Scottish Budget process in practice. Retrieved from https://bprcdn.parliament.scot/published/FPA/2025/6/19/731830a0-9fa6-4046-80dc-752b7e6fa07c/FPAS062025R8.pdf

Scottish Parliament, Finance and Public Administration Committee. (2024). Scotland's Commissioner Landscape: A Strategic Approach. Retrieved from https://www.parliament.scot/chamber-and-committees/committees/current-and-previous-committees/session-6-finance-and-public-administration-committee/business-items/scotlands-commissioner-landscape-a-strategic-approach

Scottish Parliament, SPCB Supported Bodies Landscape Review Committee. (2025, June 19). SPCB Supported Bodies Landscape Review. Retrieved from https://digitalpublications.parliament.scot/Committees/Report/SSBLRC/2025/6/19/ebc80c58-7bea-4a4a-9c6d-b5811cd016ac

Scottish Parliament. (2025, September 16). SPCB Supported Bodies Landscape Review Committee Debate: SPCB Supported Bodies Landscape Review. Retrieved from https://www.parliament.scot/chamber-and-committees/votes-and-motions/S6M-18936

Scottish Parliamentary Corporate Body. (2025, August 7). Annual report and accounts 2024-25. Retrieved from https://www.parliament.scot/-/media/files/spcb/annual-reports/spcb-annual-report-and-accounts-2024-25.pdf

Last Updated: 10/6 12:03am

Image: Budget bid by spending area

An error occured while loading, please try again in a few minutes.