The Scottish government is unveiling its draft budget for 2026-27.
Finance Secretary Shona Robison has begun to set out the SNP administration’s spending and tax plans for the coming year in a speech at Holyrood on Tuesday.
The draft proposals come just four months before the Scottish parliament election, with the SNP aiming to entice voters to keep them in power so as the party can fulfil its plans.
This is Ms Robison’s final budget before she stands down as an MSP at the May election.
The finance secretary said the budget is for Scottish families, for a stronger NHS and for investment in the nation’s infrastructure.
Highlights from the draft budget:
• There will be an investment of almost £68bn in the budget for the wellbeing of those in Scotland. When combined with the Scottish Spending Review and Infrastructure Investment Pipeline, there will be a total investment of almost £200bn;
• The Scottish Child Payment will be increased to £40 per week for families with a child under the age of one. The change will come into force at the beginning of the 2027-28 year. It is currently £27.15 per week;
• There will be two new council tax bands by 2028 and will be paid on properties worth more than £1m;
• The Scottish government will establish a tax for private jets. Ms Robison said: “To those who choose to travel by private jet, in Scotland you will pay, and you will pay a fair share for that privilege”;
• Colleges will see a 10% increase in funding, delivering an extra £70m this year;
• Communities impacted by the closure of the Fife Ethylene Plant (FEP) at Mossmorran will receive targeted support of £9m over the next three years;
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Holyrood ministers must balance the books
The Scottish budget is largely funded through the block grant alongside taxes raised north of the border.
It sets the annual funding for Scotland’s health, education, justice, transport and welfare systems, as well as any tax changes.
Holyrood ministers are legally obliged to balance the books and have limited borrowing powers with which to raise additional funds.
Scotland’s auditor general previously warned the country faces a near £5bn funding shortfall by the end of the decade.
The draft budget will be scrutinised in the Scottish parliament over the coming weeks before a final vote, where the SNP will need to garner support from outside its minority administration for it to pass into law.
It has been speculated that Scottish Labour could abstain after party leader Anas Sarwar said his MSPs would not stand in the way of the budget, effectively allowing it to pass.
Mr Sarwar is instead focused on the Holyrood election – with expectations he will announce an emergency budget if his party gets into power.
Recent polling puts the SNP in first place, although not enough for a majority, with Reform UK and Scottish Labour in second and third place respectively.
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