THE Scottish Budget for 2025/26 is set to clear its final hurdle at Holyrood today.
The £63 billion Budget has been supported by the Greens, LibDems and Alba and passed its first vote earlier this month, with the stage three vote due to be held today.
Labour announcing their plan to abstain earlier this year put paid to any speculation the Budget could fall due to a lack of political support.
Here are the key tax and spending plans are due to be signed off.
What is in the Budget?
The Budget will deliver a record settlement for the NHS and councils, fund a winter fuel payment for pensioners and help tackle child poverty.
Ministers have promised an extra £2bn for the NHS and £1bn for local authorities, compared with the 2024/25 Budget.
The Scottish Government has also announced nearly £800 million more for social security benefits, including funds to ensure every pensioner household gets a winter fuel payment after the Labour UK Government decided to only make this available to the poorest pensioners just weeks into their tenure.
(Image: Jane Barlow/PA Wire) Another headline announcement in Finance Secretary Shona Robison’s Budget speech was a plan to effectively scrap the two-child benefit cap in Scotland with ministers pledging to mitigate the cap from April 2026, or potentially sooner if they can.
No funds have been allocated to this yet and the Government remains in talks with its UK counterparts about getting the data required to pay affected families.
As part of concessions the Scottish Government has had to make to the Greens and LibDems, there has been a pledge to expand eligibility for free school meals to pupils in the first three years of secondary school who are in receipt of the Scottish Child Payment in eight council areas, alongside extra funding of £2.5m for drugs and neonatal services.
The Greens also secured an agreement for a year-long trial of a £2 bus fare cap, a £3m increase in nature restoration funding, and free ferry travel for young islanders, as well as free bus travel for people seeking asylum.
There is also a 12% real terms increase in capital funding for infrastructure projects, as well as a £30m "invest to save" scheme to fund reform and improve efficiency.
John Swinney has this week confirmed a further £25m to secure a “just transition” for Grangemouth which will come from ScotWind revenues.
Earlier this month, redundancy letters were sent out to staff at the oil refinery owned by Petroineos – with only 65 of around 500 jobs expected to be retained.
Ahead of the vote on Tuesday, Swinney also highlighted a £10.5m investment in helping GPs prevent cardiovascular disease.
National Insurance complications
While the Budget will no doubt get the green light today, there remain concerns amid the UK Government’s plan to increase employers’ National Insurance from April.
Holyrood ministers estimate they will need about £550m to cover the increased costs for public sector workers, rising to £750m when indirect employees such as those in childcare, higher education or social care are included.
They have been told to expect about £300m in compensation from the Treasury, but Robison has called this unacceptable.
It is likely funds will be required from other parts of the Budget to deliver this policy across Scotland’s public sector.
To placate cash-strapped councils, Robison has pledged an additional £144m to cover 60% of the National Insurance costs, but several councils have announced large council tax rises as a nationwide freeze comes to an end.