The Scottish Government will today unveil its draft Budget for 2026–27, with Finance Secretary Shona Robison warning that “tough” decisions are needed to balance the nation’s spending and tax plans.
Speaking ahead of her 14:20 address at Holyrood, Robison said the Budget would aim to “make the most of its resources” while continuing to invest heavily in the NHS, tackle the cost of living crisis, boost the economy and accelerate Scotland’s response to climate change.
The announcement comes just four months before the Holyrood election – a critical test for the SNP as it seeks re-election to implement its Budget proposals. The party no longer holds a majority in parliament, which means its spending plan will rely on support or abstentions from opposition MSPs to pass.
Finance Secretary Robison said she had held “constructive” talks with some parties in advance of the debate, but accused the Conservatives of proposing “£1bn of unfunded tax cuts”. Tory leader Russell Findlay countered by urging the government to cut income tax, reduce business rates and “give people a much-needed break” after years of rising costs.
Meanwhile, Scottish Labour leader Anas Sarwar confirmed his MSPs would not block the Budget, saying an alternative Labour government after May’s election could deliver “real change” through an emergency Budget focused on fixing the NHS, creating jobs for young people and tackling crime.
Greens co-leader Patrick Harvie signalled his party could once again back the Budget – but only if it includes new revenue from taxes on casinos, bookmakers and high-value properties, as well as fairer childcare access and support for workers hit by the Mossmorran plant closure. The Liberal Democrats also set out a list of demands, including increased college funding, help for island communities and improved care services.
According to the Fraser of Allander Institute, Scotland’s total Budget is expected to be around £60 billion, supported by an additional £750 million from improved tax forecasts and UK spending decisions. However, analysts warn of a £1bn shortfall in the capital budget, affecting infrastructure projects such as road maintenance.
Robison’s statement will mark the beginning of three stages of parliamentary scrutiny, culminating in a final vote in late February. If approved, the Budget will set funding for Scotland’s key public services – health, education, transport, welfare, and justice – along with any tax changes for the year ahead.
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As Holyrood braces for a heated debate, Robison maintains the government’s focus is on fairness and fiscal responsibility. “We have had to make difficult choices,” she said, “but this Budget will deliver for Scotland’s people and protect the services they rely on.”
Follow live updates and background on the Budget announcement via BBC Scotland News, including analysis and reaction from across the political spectrum.
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