ScottishBudget: 2025-26
TheScottishGovernment,Edinburgh2025 ScottishBudget: 2025-26 LaidbeforetheScottishParliamentbytheScottishMinisters,April2025 SG/2025/73
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Contents Foreword BytheCabinetSecretaryforFinance,theEconomy andFairWork 4 Chapter1 StrategicOverview–Stronger,FairerandWealthierScotland 7 Chapter2 TaxPolicy 10 Chapter3 ScottishBudget 11
Foreword
bytheCabinetSecretaryforFinance, theEconomyandFairWork
ItiswithgreatpleasurethatIpresenttheScottishBudget2025-26,ourblueprintfora brighterfuture,asweembarkonthejourneyofbuildingastronger,fairer,andwealthier Scotland.Thisbudgetencapsulatesourunwaveringcommitmenttoenhancingthelivesof everyScot,investingincriticalsectors,andfosteringathrivingeconomythatbenefitsus all.
Attheheartofthisbudgetliesaresolutefocusonstrengtheningourpublicservices.We believethatstrongpublicservicesformthebedrockofaprosperoussociety.Tothisend, weareproudtoannouncethe establishmentofa publicbuscompany,alandmark initiativethatwillnotonlyimproveaccessibilityandaffordabilitybutalsopromote sustainabletransportationsolutionsacrossScotland.Byinvestinginourpublictransport infrastructure,weaimtoconnectcommunities,reducecongestion,andenhancetheoverall qualityoflifeforourcitizens.
Furthermore,weareexpandingtheYoungScotNEC(NationalEntitlementCard)toinclude aremarkable 50%discountonrailtravel.Recognisingtheimportanceofproviding affordablemobilityoptionsforouryouth,thispolicyaimstoempowerouryounger generationtoexploreScotland,connectwithdifferentregions,andbroadentheirhorizons. Byinvestingintheirjourneys,weinvestintheirfutures.
Anotherpivotalstepwearetakingisallocating £2millionforaFourDayWorkingWeek PilotScheme.Wefirmlybelieveinstrikingabalancebetweenworkandpersonalwellbeing,andthispilotschemeaimstoexplorethepotentialbenefitsofreducedworking hourswhilemaintainingproductivity.Throughthisinitiative,wehopetoenhancework-life balance,boostemployeesatisfaction,andfosterahealthier,moreefficientworkforce.
InvestinginScotland'srailways andtheScotRailbrandisakeyprioritywithinthisbudget. Werecognisethevitalrolethatrailwaysplayinfacilitatingconnectivity,drivingeconomic growth,and reducingcarbonemissions.Byallocatingsubstantialresourcestoenhance Scotland'srailinfrastructure,weaimtocreateareliable,efficient,andsustainable transportationnetworkthatservesbothurbanandruralcommunities.
Inlinewithourcommitmenttopublicwelfare,thisbudgetallocates recordlevelsof fundingtotheNationalHealthService.Ourinvestmentreflectsourdedicationtoproviding thehighestqualityhealthcareservices,reducingwaitingtimes,andensuringthatevery Scotreceivesthecaretheydeserve.Bysupportingourhealthcaresystem,weaimto safeguardthewell-beingofourpeopleandbuildahealthierScotlandforall.
Thisbudgetplacesastrongemphasisonsupportingoureconomy.Weunderstandthata flourishingeconomyisessentialforaprosperousnation.Byfosteringanenvironment conducivetobusinessgrowth,innovation,andinvestment,weaimtoattractnew industries,createjobopportunities,andempowerentrepreneurs.Ourcommitmentto providingafavourableeconomiclandscapewillensurethatScotlandremainsavibrant hubofopportunityandprosperity.
TheScottishBudget2025-26ismorethanjustnumbersandpolicies;itisatestamentto ourunwaveringdedicationtobuildingabrighterfutureforallwhocallthisbeautiful nationhome.Together,wecanshapeaScotlandthatistheenvyoftheworld.
TomArthurMSP CabinetSecretaryforFinance,theEconomyandFairWork
Chapter1
StrategicContext:AStronger, FairerandWealthierScotland
Context
Scotlandhasfacedyearsofeconomicdifficulty,causedbyBrexit,theCostofLivingCrisis andtheCoronavirusPandemic.Nowthatthemostseveredamagehasbeendone,Scotland hashadtobalancethebooksandensurethatwearespendingthecorrectamountinthe correctplaces.
TheScottishGovernmentbudgetforthisyearfocusesontheprioritiessetoutinFebruary inourProgrammeforGovernment.
Wehaveincreasedinvestmentintoourhealthservice,tofocusonthewellbeingofour NHSstaffandtopreparefortheestablishmentoftheNationalCareServiceattheendof thisyear.
WehaveallocatedadditionalfundstotheTransportBrief,toprepareforourplansfora nationalbusoperatorandadiscountontheNECforYoungPeople.
TheScottishMinistershaveplacedpriorityoninvestinginthefollowingareas:
•HealthandSocialCare
•NetZero,TransportandInfrastructure
•EducationandSkills
•SocialJustice,HousingandCommunities
Webelievethatthroughgreaterinvestmentintheseareas,wecanbuildbetterpublic servicesanddeliverfortheScottishpeople.
TheScottishGovernmentaredisappointedthattheUKTreasurydecidednottoincrease theScottishBlockGrantin-linewithforecastsfromtheScottishFiscalCommission.This leavesScotlandabudgetthatisover£2billionshorterthanwasexpected.
ThisdecreaseintheScottishBudgetmeansthatMinistershavehadgreaterdifficultyin preparingabalancedbudget,howeverthathasbeenachievedandthatisenclosedwithin thisbudgetthatwepresenttoParliament.
OutcomesandEquality
TheScottishBudgetisunderpinnedbyScotland’sNationalPerformanceFramework. Thissetsoutavisionforamoresuccessfulcountry,whereallofScotlandcanflourish throughincreasedwellbeing,andsustainableandinclusiveeconomicgrowth.Alongside thisvision,theScottishBudgetdeliversagainstourelevennationaloutcomes:
Werespect, protectand fulfilhuman rightsand livefreefrom discrimination
Wearecreative andourvibrant anddiverse culturesare expressedand enjoyedwidely
Wevalue,enjoy, protectand enhanceour environment
Weare healthyand active
Wehave aglobally competitive, entrepreneurial, inclusiveand sustainable economy
OURPURPOSE
Weareopen, connectedand makeapositive contribution internationally
Tofocusoncreatinga moresuccessfulcountrywith opportunitiesforallofScotland toflourishthroughincreased wellbeing,andsustainableand inclusiveeconomicgrowth
OURVALUES
Weareasocietywhichtreatsallour peoplewithkindness,dignityand compassion,respectstherule oflaw,andactsinanopen andtransparentway
Wehave thrivingand innovative businesses, withqualityjobs andfairworkfor everyone
OurPurpose
Wetackle povertyby sharing opportunities, wealthandpower moreequally Welivein communities thatareinclusive, empowered, resilient andsafe
Wegrowup loved,safeand respectedso thatwe realiseour fullpotential Wearewell educated, skilledand ableto contribute tosociety
TofocusoncreatingamoresuccessfulcountrywithopportunitiesforallofScotlandto flourishthroughincreasedwellbeing,andsustainableandinclusiveeconomicgrowth.
OurValues
Weareasocietywhichtreatsallourpeoplewithkindness,dignityandcompassion, respectstheruleoflaw,andactsinanopenandtransparentway.
NationalOutcomes
•Children andYoung People: Wegrow uploved, safeand respected sothat we realiseourfullpotential
•Communities: Welive incommunities that areinclusive, empowered, resilient and safe
•Culture: Wearecreative andour vibrant anddiverse cultures areexpressed and enjoyedwidely
•Economy: Wehave aglobally competitive, entrepreneurial, inclusive and sustainableeconomy
•Education: Weare well educated, skilled andable tocontribute tosociety
•Environment: Wevalue, enjoy, protect andenhance ourenvironment
•Fair Work andBusiness: Wehave thriving andinnovative businesses, with quality jobsandfairworkforeveryone
•Health: Weare healthy and active
•Human Rights: Werespect, protect andfulfil human rights andlive free from discrimination
•International: Weare open, connected andmake apositive contribution internationally
•Poverty: Wetackle poverty bysharing opportunities, wealth andpower more equally
ScottishGovernmentTaxPolicy2025-26
AsagreedintheProgrammeforGovernment:AStronger,Fairer,WealthierScotland,the ScottishGovernmenthaveagreedtomakelittleincreasetotheIncomeTaxRatesin Scotlandthisyear.
WebelievethatwithaslightincreasetotheBasicandIntermediateRatesofTaxation,we cancontinuetodeliverpublicinvestmentthatbenefitsallofScotland.
Chapter2
IncomeRange Band *AssumesindividualsareinreceiptoftheStandardUKPersonalAllowance **Thoseearningmorethan£100,000willseetheirPersonalAllowancereducedby£1forevery£2earnedover£100,000 Rate StarterRate £11,500-£14,732* 19% BasicRate £14,733-£25,688 21% IntermediateRate £25,689-£43,662 22% HigherRate £43,663-£125,140 42% TopRate Above£125,140** 47%
TaxPolicy
Chapter3 TotalScottish GovernmentSpending
ISBN:978-1-80525-042-5
ThisdocumentisalsoavailableonTheScottishGovernmentwebsite: www.gov.scot ProducedforTheScottishGovernmentbyAPSGroupScotland,21TennantStreet,EdinburghEH65NA
©Crowncopyright2025
PPDAS1171882(12/22) w w w . g o v . s c o t
