Chapter 9 Deputy First Minister, Economy & Gaelic
Portfolio Responsibilities
The Deputy First Minister, Economy and Gaelic (DFMEG) portfolio is responsible for delivering investment and economic growth across the country. That includes spending on innovation, entrepreneurship, supporting business and industry, employment, regeneration, gigabit broadband delivery and twelve city and regional growth deals. DFMEG is also responsible for enabling our Enterprise Agencies, VisitScotland and the Scottish National Investment Bank to deliver projects across Scotland, from Sumitomo’s new plant and Ardersier Port, to iGii in Stirling and ETZ EnergyWorks facility in Aberdeen.
The portfolio provides a strategy function and supports policy, leading cross-government delivery, and coordinates relations with the UK Government, Welsh Government and Northern Ireland Executive. It is responsible for delivery of Scottish Parliament and local government elections, and provides funding in relation to a number of independent statutory public inquiries. The funding also delivers Scotland’s Redress Scheme for survivors of historical abuse in care, supports preparations for major events, and promotes Gaelic and Scots across Scotland.
The DFMEG portfolio is at the heart of the Scottish Government’s priority to grow the economy. It is working with partners to create the conditions for investment and economic growth that delivers good jobs, supports the green industries of the future, and lifts people out of poverty by raising living standards.
From regenerating infrastructure in local areas to investing in the industries of the future, this portfolio budget invests in the places, people and businesses of Scotland. Through the National Strategy for Economic Transformation (NSET), it will build on Scotland’s entrepreneurial strengths, boost innovation and productivity, support trade, exports and investment, and address barriers to labour market participation.
Our Programme for Government commitments lay a strong foundation for growth. Through our expanded £15m Enterprise Package we will support promising innovators and entrepreneurs, including increasing the number of women starting and scaling businesses, and boosting the growth of emerging economic clusters.
We will deliver a co-ordinated programme to attract inward investment to Scotland and capital investment in the priority areas of net zero, housing, and infrastructure. Working with key partners, we will ensure our upcoming major events, including the Orkney 2025 Island Games and EURO 2028, deliver economic and social benefit for communities across Scotland. Through our expanded £50 million funding for place-based regeneration schemes, we are creating connected and empowered communities across Scotland, from Lochee in Dundee, Pilton in Edinburgh, Possilpark in Glasgow, Arbroath in Angus to Glen Urquhart in Drumnadrochit. These investments will contribute in the longer-term to reducing health inequalities and increasing the sustainability of Scotland’s public services.
We will demonstrate our commitment to the Scottish Languages Bill by raising investment in the sector to £30.5 million, building on the measures already in place in education, the arts and community and public life, and contributing to inclusive growth, education and enjoyment of language rights for Gaelic and Scots speakers.
Deputy First Minister, Economy and Gaelic intended contriubitions to the National Outcomes
Primary National Outcomes
- Economy
- Fair Work and Business
- Poverty
- Environment
- International
- Communities
- Health
Secondary National Outcomes
- Children and Young People
- Education
- Human Rights
For further information on the purpose of the portfolio budget, and contributions to national outcomes (including impacts of spend on equality of outcome) please refer to the relevant portfolio annex in the published Equality and Fairer Scotland Budget Statement.
Deputy First Minister, Economy & Gaelic
The prior year 2024-25 Budget comparator figures are based on the latest in-year budget numbers which were revised at the Autumn Budget Revision. The 2023-24 Scottish Budget comparator figures reflect the outturn numbers for that year.
Table 9.01: Spending Plans (Level 2)
| Level 2 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| Digital |
148.8 |
210.3 |
98.0 |
| Employability |
92.3 |
100.2 |
104.5 |
| Enterprise, Trade & Investment |
487.7 |
420.0 |
386.7 |
| European Structural Funds |
– |
– |
– |
| European Regional Development Fund |
– |
– |
– |
| Economic and Scientific Advice |
16.2 |
12.8 |
14.2 |
| Organisational Readiness |
36.8 |
37.9 |
40.0 |
| Government Business & Constitutional Relations |
7.9 |
9.6 |
7.2 |
| Regeneration |
50.1 |
60.7 |
62.2 |
| Scottish National Investment Bank |
249.0 |
177.1 |
200.4 |
| Cities Investment & Strategy |
154.2 |
206.2 |
224.0 |
| Ferguson Marine |
76.8 |
62.7 |
47.9 |
| Tourism and Major Events |
83.7 |
51.7 |
58.5 |
| Gaelic |
27.3 |
25.5 |
30.5 |
| Redress, Relations & Response |
483.4 |
54.3 |
60.4 |
| Total Deputy First Minister, Economy & Gaelic |
1,914.3 |
1,429.1 s |
1,334.4 |
| of which |
|
|
|
| Total Fiscal Resource |
560.6 |
587.0 |
612.6 |
| of which Operating Costs |
95.6 |
95.5 |
93.2 |
| Non-cash |
31.8 |
29.2 |
26.1 |
| Capital |
532.7 |
619.9 |
528.3 |
| Financial Transactions (FTs) |
269.7 |
192.9 |
167.4 |
| UK Funded AME |
519.6 |
0.1 |
– |
Presentational Adjustments for Scottish Parliament Approval
| Enterprise (NDPB Non-cash) |
(15.6) |
(12.2) |
(13.5) |
| Ferguson Marine (NDPB Non-cash) |
(0.8) |
(0.6) |
– |
| Highlands and Island Enterprise (NDPB Non-cash) |
(2.7) |
(3.2) |
(3.0) |
| South of Scotland Enterprise (NDPB Non-cash) |
(0.3) |
(0.1) |
(0.7) |
| Scottish National Investment Bank (NDPB Non-cash) |
(1.4) |
(0.3) |
(0.4) |
| Bòrd na Gàidhlig (NDPB Non-cash) |
– |
– |
– |
| Redress Scotland (NDPB Non-cash) |
– |
– |
– |
| Central Government Grants |
4.5 |
4.5 |
4.5 |
| Tourism (NDPB Non-cash) |
(5.9) |
(2.3) |
(3.1) |
| Total Deputy First Minister, Economy and Gaelic |
1,892.1 |
1,414.9 |
1,318.3 |
| Total Limit on Income (accruing resources) |
400.0 |
|
|
Table 9.02: Digital Spending Plans (Level 3)
| Level 3 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| Digital Connectivity* |
101.1 |
142.9 |
33.4 |
| Digital Economy |
(3.2) |
– |
– |
| Digital Strategy |
50.9 |
67.4 |
64.6 |
| Total Digital |
148.8 |
210.3 |
98.0 |
| of which |
|
|
|
| Fiscal Resource |
28.3 |
39.0 |
37.9 |
| Non-cash |
3.2 |
4.8 |
4.8 |
| Capital |
120.6 |
166.5 |
55.3 |
| FTs |
(3.2) |
– |
– |
| UK Funded AME |
– |
– |
– |
*Reflects £67.7 million of BT Gainshare income bringing the total gross investment to £101.1 million in 2025-26
Table 9.03: Employability Spending Plans (Level 3)
| Level 3 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| Employability |
92.3 |
100.2 |
104.5 |
| Total Employability |
92.3 |
100.2 |
104.5 |
| of which |
|
|
|
| Fiscal Resource |
92.3 |
100.2 |
104.5 |
| Non-cash |
0.0 |
0.0 |
0.0 |
| Capital |
- |
- |
- |
| FTs |
- |
- |
- |
| UK Funded AME |
- |
- |
- |
Table 9.04: Enterprise, Trade & Investment Spending Plans (Level 3)
| Level 3 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| Enterprise |
(0.4) |
4.2 |
9.6 |
| Scottish Enterprise |
350.9 |
234.7 |
236.1 |
| Highlands & Islands Enterprise |
69.4 |
56.0 |
56.3 |
| Innovation, Entrepreneurship & International Trade & Investment |
36.6 |
96.2 |
55.6 |
| South of Scotland Enterprise Agency |
31.2 |
28.9 |
29.1 |
| Total Enterprise, Trade & Investment |
487.7 |
420.0 |
386.7 |
| of which |
|
|
|
| Fiscal Resource |
222.6 |
229.0 |
241.2 |
| Non-cash |
20.8 |
18.8 |
17.2 |
| Capital |
131.0 |
153.2 |
128.3 |
| FTs |
39.8 |
18.9 |
– |
| UK Funded AME |
73.5 |
– |
– |
Table 9.05: European Structural Funds 2014-20 Programmes Spending Plans Spending Plans (Level 3)
| Level 3 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| ESF Central Government Spend - EC Income |
– |
– |
– |
| ESF Central Government Spend |
– |
– |
– |
| ESF Grants to Local Authorities |
– |
– |
– |
| ESF Grants to Local Authorities - EC Income |
– |
– |
– |
| Total ESF 2014-20 Programmes |
– |
– |
– |
| of which |
|
|
|
| Fiscal Resource |
– |
– |
– |
| Non-cash |
– |
– |
– |
| Capital |
– |
– |
– |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.06: European Regional Development Funds Spending Plans (Level 3)
| Level 3 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| ERDF Central Government Spend - EC Income |
– |
– |
– |
| ERDF Central Government Spend |
– |
– |
– |
| ERDF Grants to Local Authorities |
– |
– |
– |
| ERDF Grants to Local Authorities - EC Income |
– |
– |
– |
| Total ERDF 2014-20 Programmes |
– |
– |
– |
| of which |
|
|
|
| Fiscal Resource |
– |
– |
– |
| Non-cash |
– |
– |
– |
| Capital |
– |
– |
– |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.07: Economic & Scientific Advice Spending Plans (Level 3)
| Level 3 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| Economic Strategy |
6.4 |
3.6 |
4.4 |
| Scientific Engagement & Advice |
3.0 |
3.0 |
3.0 |
| Office of the Chief Economic Adviser |
6.8 |
6.2 |
6.8 |
| Total Economic & Scientific Advice |
16.2 |
12.8 |
14.2 |
| of which |
|
|
|
| Fiscal Resource |
16.2 |
12.8 |
14.2 |
| Non-cash |
– |
– |
– |
| Capital |
– |
– |
– |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.08: Organisational Readiness Spending Plans (Level 3)
| Level 3 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| Strategy and Delivery |
5.6 |
3.3 |
7.7 |
| Resilience |
4.4 |
4.7 |
4.6 |
| Office of the Chief Researcher |
0.6 |
0.8 |
1.0 |
| Response and Readiness |
26.2 |
29.2 |
26.7 |
| Total Organisational Readiness |
36.8 |
37.9 |
40.0 |
| of which |
|
|
|
| Fiscal Resource |
32.5 |
37.2 |
40.0 |
| Non-cash |
0.4 |
0.7 |
– |
| Capital |
3.6 |
– |
– |
| FTs |
– |
– |
– |
| UK Funded AME |
0.2 |
– |
– |
Table 9.09: Government Business and Constitutional Relations Spending Plans (Level 3)
| Level 3 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| Local Government Elections |
0.3 |
0.8 |
0.8 |
| Boundaries Scotland |
0.3 |
0.4 |
0.4 |
| Scottish Parliament Elections |
– |
0.1 |
0.1 |
| Government Business & Constitutional Relations Policy and Co-ordination |
7.3 |
8.3 |
5.9 |
| Total Government Business and Constitutional Relations |
7.9 |
9.6 |
7.2 |
| of which |
|
|
|
| Total Fiscal Resource |
7.9 |
9.6 |
7.2 |
| Non-cash |
– |
– |
– |
| Capital |
– |
– |
– |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.10: Scottish National Investment Bank Spending Plans (Level 3)
| Level 3 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| Scottish National Investment Bank |
249.0 |
177.1 |
200.4 |
| Total Scottish National Investment Bank |
249.0 |
177.1 |
200.4 |
| of which |
|
|
|
| Fiscal Resource |
4.7 |
2.8 |
– |
| Non-cash |
0.1 |
0.3 |
0.4 |
| Capital |
1.3 |
– |
32.6 |
| FTs |
233.1 |
174.0 |
167.4 |
| UK Funded AME |
9.8 |
– |
– |
Table 9.11: Regeneration Spending Plans (Level 3)
| Level 3 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| Regeneration |
50.1 |
60.7 |
62.2 |
| Total Regeneration |
50.1 |
60.7 |
62.2 |
| of which |
|
|
|
| Fiscal Resource |
(11.3) |
14.9 |
12.2 |
| Non-cash |
– |
– |
– |
| Capital |
61.4 |
45.8 |
50.0 |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.12: Cities Investment & Strategy Spending Plans (Level 3)
| Level 3 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| City and Regional Investment & Strategy |
146.4 |
197.7 |
215.0 |
| Growth Accelerator |
7.9 |
8.5 |
9.0 |
| Total Cities Investment & Strategy |
154.2 |
206.2 |
224.0 |
| of which |
|
|
|
| Fiscal Resource |
17.7 |
21.2 |
21.2 |
| Non-cash |
– |
– |
– |
| Capital |
136.6 |
185.0 |
202.8 |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.13: Ferguson Marine Spending Plans (Level 3)
| Level 3 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| Ferguson Marine |
76.8 |
62.7 |
47.9 |
| Total Ferguson Marine |
76.8 |
62.7 |
47.9 |
| of which |
|
|
|
| Fiscal Resource |
8.8 |
1.9 |
1.9 |
| Non-cash |
0.8 |
0.6 |
– |
| Capital |
67.2 |
60.2 |
46.0 |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.14: Tourism and Major Events Spending Plans (Level 3)
| Level 3 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| Tourism |
83.7 |
50.8 |
52.2 |
| Major Events |
0.0 |
0.9 |
6.4 |
| Total Tourism & Major Events |
83.7 |
51.7 |
58.5 |
| of which |
|
|
|
| Fiscal Resource |
67.6 |
43.2 |
47.2 |
| Non-cash |
5.8 |
3.3 |
3.1 |
| Capital |
6.3 |
5.2 |
8.3 |
| FTs |
– |
– |
– |
| UK Funded AME |
4.0 |
0.0 |
– |
Table 9.15: Gaelic Spending Plans (Level 3)
| Level 3 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| Gaelic |
27.3 |
25.5 |
30.5 |
| Total Gaelic |
27.3 |
25.5 |
30.5 |
| of which |
|
|
|
| Fiscal Resource |
22.6 |
21.5 |
25.5 |
| Non-cash |
– |
– |
– |
| Capital |
4.7 |
4.0 |
5.0 |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
Table 9.16: Redress, Relations & Response Spending Plans (Level 3)
| Level 3 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| Redress, Relations & Response |
483.4 |
54.3 |
60.4 |
| Total Redress, Relations & Response |
483.4 |
54.3 |
60.4 |
| of which |
|
|
|
| Fiscal Resource |
50.7 |
53.6 |
59.7 |
| Non-cash |
0.7 |
0.7 |
0.7 |
| Capital |
– |
– |
– |
| FTs |
– |
– |
– |
| UK Funded AME |
432.0 |
0.0 |
– |
Table 9.17: Central Government Grants to Local Authorities Spending Plans (Level 3)
| Level 3 |
2023-24 Outturn £m |
2024-25 ABR Budget £m |
2025-26 Budget £m |
| Gaelic |
4.5 |
4.5 |
4.5 |
| Total Deputy First Minister, Economy & Gaelic Central Government Grants |
4.5 |
4.5 |
4.5 |
| of which |
|
|
|
| Fiscal Resource |
4.5 |
4.5 |
4.5 |
| Non-cash |
– |
– |
– |
| Capital |
– |
– |
– |
| FTs |
– |
– |
– |
| UK Funded AME |
– |
– |
– |
