Scottish budget at a glance as SNP sets 2025-26 plans

The SNP promise record funding for the NHS, no raid on income tax and cash for local regeneration including in Dundee and Arbroath.

The package was set out by Finance Secretary Shona Robison at Holyrood on Wednesday afternoon.

Among the headline measures on tax and spending, there were pledges for a share of £62 million for town centre upgrades.

Cash was outlined for struggling High Street businesses and there was focus on tackling child poverty, struggling health services, cultural centres such as Dundee Contemporary Arts and additional support needs teaching.

Here are the highlights.

Record spending on the NHS

The Scottish NHS will receive a record funding settlement of £21 billion next financial year, Ms Robison said.

She told MSPs this was her “biggest commitment”, saying: “Today’s budget provides a record £21 billion for health and social care.

“An increase of £2 billion for frontline NHS boards – a record uplift.

“That is money that will make it easier for people to access GP appointments, that will improve A&E and ensure more Scots get the care they need in good time.”

She said it would mean by March 2026 no-one will wait longer than 12 months for a new outpatient appointment, inpatient treatment or day case treatment.

However, it is already the case that patients are supposed to be “guaranteed” treatment time within 12 weeks.

Ninewells Hospital in Dundee. Image: DC Thomson.

A record cash award for Scottish councils

Scottish councils will receive a record funding settlement from the Budget.

Ms Robison said: “In 2025-26, the Scottish Government will increase local authority funding by more than £1 billion.

“It will take their total funding to over £15 billion, including £289 million to give real-terms protection to the general revenue grant.”

She said this cash delivers the pay increases agreed for teachers, social care workers and refuse collectors, among others.

No council tax freeze

There is “no reason” for big increases in council tax, the Finance Secretary has said.

She announced a more than £1 billion uplift for local authorities, but warned that levies should be kept low after a council tax freeze in the past 12 months.

“While it will be for councils to make their own decisions with record funding, there is no reason for big increases in council tax next year,” she said.

Perthshire school strikes — Parents said they were unhappy at the strikes targeting Perthshire in the run-up to the budget. Image Kenny Smith/DC Thomson.

No changes to income tax bands

Income tax rates in Scotland have been frozen until 2026, Ms Robison told MSPs.

She announced that there would be no change in this Parliamentary session to the rates, nor would any more bands be introduced.

Meanwhile, the amount at which the basic and intermediate rates – 20% and 21% – is paid will increase by 3.5% in the next financial year, which Ms Robison has said will see more paying the lower 19% rate due to increasing wages.

Mitigation of the two-child benefit cap

The Scottish Government will mitigate the impact of the two-child benefit cap, Ms Robison said.

Ministers north of the border have hit out at the Tory-implemented policy for years, which has not been scrapped by the new Labour administration.

She urged the UK Government to provide the necessary data to allow for the change to be made.

“Be in no doubt that the cap will be scrapped,” she said.

“My challenge to Labour is to work with us – join us in ending the cap in Scotland, give us the information that we need.

“But, either way, let me be crystal clear, this Government is to end the two-child cap and in doing so will lift over 15,000 Scottish children out of poverty.”