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The Scottish government has unveiled its draft budget for 2026-27 – with a boost to the Scottish Child Payment and homes worth more than £1m to face higher council tax bills.
Finance Secretary Shona Robison 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 that the party can fulfil its plans.
It is Ms Robison’s final budget before she stands down as an MSP at the May election.
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;
• Funding for local government will increase by 2% in real terms. Ms Robison branded the settlement “fair” and a “reasonable deal” as she urged local authorities to translate the funding into “reasonable decisions on council tax”;
• A tax cut has been provided to low earners. The basic (20%) rate, which currently starts at £15,398, and the intermediate rate (21%), which currently starts at £27,492, will increase by 7.4% to £16,537 and £29,526 respectively;
• A total of £22.5bn has been set aside for health and social care, including a record £17.6bn for the NHS’s frontline services, £2.4bn to support the vital work of GPs, primary care and community services, and more than £2.3bn to aid social…
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