Scottish draft budget unveiled as SNP reveal plans for the coming year | UK News

Scotland’s finance secretary has unveiled the nation’s draft budget for the coming year – with plans to scrap Westminster’s two-child benefit cap and a record investment in the NHS.

Shona Robison set out the Scottish government’s tax and spending proposals for 2025-26 in a speech at Holyrood.

The MSP previously said the budget will put “the people of Scotland first”.

Ms Robison told the chamber on Wednesday: “This budget invests in public services, lifts children out of poverty, acts in the face of the climate emergency, and supports jobs and economic growth.

“It is a budget filled with hope for Scotland’s future.”

Highlights from the draft budget:

• The Scottish government will mitigate the impact of the UK government’s two-child benefit cap. Ms Robison has urged Westminster to provide the necessary data to allow for the change to be made. She said: “Be in no doubt that the cap will be scrapped.”

• The nation’s NHS will receive a record £21bn for health and social care – an increase of £2bn for frontline NHS boards. The investment comes as spending watchdog Audit Scotland warned that the NHS is unsustainable in its present state, with a fundamental change “urgently needed”.

• Almost £200m will be invested to reduce NHS waiting times. Ms Robison said by March 2026, no one will wait longer than 12 months for a new outpatient appointment, inpatient treatment or day case treatment.

• Local authority funding will be increased by more than £1bn, taking the total amount to more than £15bn.

• More than £300m of ScotWind revenues will be invested in jobs and in measures to meet the climate challenge.

• £768m will be invested into affordable homes, enabling more than 8,000 new properties for social rent, mid-market rent and low-cost home ownership to be built or acquired this coming year.

• The Scottish government will also work with the City of Edinburgh Council to “unlock” more than 800 new net zero homes at the local authority’s Granton development site.

• New funding of £4m will be invested to tackle homelessness and for prevention pilots.

• An additional £800m will be invested into social security benefits.

• More than £2.5m will be delivered to support actions within the Disability Equality Action Plan.

• £120m will be provided to headteachers to support initiatives designed to address the poverty-related attainment gap.

• Free school meals will also be expanded to primary 6 and 7 children from low-income families.

• A new initiative titled “bright start breakfasts” will be funded to help deliver more breakfast clubs in primary schools across the country.

• £29m will be invested into an additional support needs (ASN) plan, which will help maintain teacher numbers at 2023 levels and additionally train new ASN teachers.

The Scottish budget is largely funded through the block grant alongside taxes raised north of the border.

Holyrood has an additional £3.4bn to spend in 2025-26, thanks to cash announced by UK Chancellor Rachel Reeves in her budget in October – taking the overall settlement to £47.7bn.

However, the Scottish budget for 2023-24 amounted to around £59.7bn.

Holyrood ministers are legally obliged to balance the books and have limited borrowing powers with which to raise additional funds.

The SNP had already confirmed plans to use some of the funding to restore a universal winter fuel payment for pensioners next year.

Under the plans, those in receipt of pension credit or other benefits will receive a £200 or £300 payment, depending on their age.

All other pensioners will receive a reduced payment of £100.

The draft budget will be scrutinised in the Scottish parliament over the coming weeks before an expected vote in February, where the SNP will need to garner support from outside its minority administration for it to pass.

Following her statement, Ms Robison said she is looking forward to working with all parties at the Scottish parliament to get the plans passed.

She said: “I am proud to present a budget that delivers on the priorities of the people of Scotland.

“Parliament can show that we understand the pressures people are facing.

“We can choose to come together to bring hope to people, to renew our public services, and deliver a wealth of new opportunities in our economy.”