Budget Bill to become law

The Scottish Budget has been approved by Parliament, ensuring funding can be targeted towards the missions of supporting public services, growing the economy and tackling poverty.

MSPs have passed the 2024-25 Scottish Budget Bill, with spending commitments including:

• £13.2 billion for frontline NHS boards, over £1.5 billion for policing and nearly £400 million to support the fire service
• Over £5 billion to help create jobs, support businesses, aid the transition to net zero and fund public transport to provide viable alternatives to car use
• £6.3 billion for social security benefits, £200 million to help tackle the poverty-related attainment gap and £1.5 million to cancel school meal debt 
• Over £14 billion for local authorities – the highest settlement yet delivered for local government

Deputy First Minister and Finance Secretary Shona Robison said:

“I am pleased that Parliament has approved our Budget, allowing us to enact our spending plans in the face of a deeply challenging financial situation. This is a Budget which stays true to our progressive values: investing in services, growing our economy, protecting vulnerable people and tackling the climate emergency.

“We have taken decisions which prioritise funding in the areas that have the greatest impact on the quality of life for the people of Scotland – despite the challenges caused in large part by the UK Government’s failure to invest in public services and infrastructure. Our block grant funding from the UK Government has fallen in real terms since 2022-23. Our capital spending power is due to contract by almost 10 per cent in real terms over five years – that’s around £1.6 billion in total, equivalent to the cost of building a large hospital.

“I have written to the Chancellor urging him to change course, using next week’s Spring Budget to increase funding for public services and infrastructure instead of cutting taxes.”

Background

Budget (Scotland) (No.3) Bill - stage 3 debate: Deputy First Minister speech

The Budget includes more than £1.3 billion for the Wellbeing Economy, £1 billion for the road network, around £2.7 billion for public transport and active travel, almost £556 million in the Affordable Housing Supply Programme, more than £400 million for energy efficiency upgrades and to promote the circular economy, and an increase of £128 million to the education and skills budget.

Chancellor urged to prioritise investment in public services

Summary of UK Economic and Fiscal Outlook from Office of the Chief Economic Adviser