Meeting of the Parliament 13 January 2026
As before, my aim has been to seek common ground. Thanks to constructive pre-budget engagement, key priorities of Opposition members have been included alongside the priorities of the Government in my budget plans today. Those include, among other things, more money to improve neurodevelopmental assessments and care for children and young people; additional investment for changing places toilets; resources to support bus franchising; and support for the redevelopment of Edinburgh’s King’s Theatre.
From our budget conversations, I have no doubt that members across the chamber will also welcome actions in other key areas. That includes our commitment to the communities that are affected by the closure of Mossmorran, which will receive targeted support of £9 million over the next three years; our commitment to the residents of Shetland and Orkney, who will benefit from lower costs as we scrap peak fares for islanders on the northern isles ferries; and our commitment to the college sector, which will see a substantial 10 per cent increase in funding—that is £70 million extra this year. Alongside that, the Scottish Funding Council, supported by the Scottish Futures Trust, will be working with colleges, including Forth Valley College and Dundee and Angus College, to develop a comprehensive infrastructure investment plan that addresses local priorities.
This is a budget for a stronger health service and a budget that protects and enhances the best cost of living support package available anywhere in the UK. It is a budget that is worthy of support. For our NHS, it delivers a record £17.6 billion for front-line services; £2.4 billion to support the vital work of GPs, primary care and community services; and more than £2.3 billion of support for social care.
That means that our health service will have the resources that it needs to continue to reduce waiting times and cut waiting lists. I commend NHS staff for the work that they are doing right now to cut the longest waits—something that has now been achieved for six months in a row. There will be more operations and appointments, building on the targeted investment in last year’s budget, which has seen a record number of hip and knee procedures and an increase in in-patient and out-patient appointments. We know what works, and we are investing at record levels so that our NHS can do more of it.
There will be significant new investment in our staff—in higher wages, improved training and action to support staff wellbeing, retention and work-life balance. The NHS is nothing without its staff, and I want them to hear loud and clear that they are respected and valued. Thanks to their efforts, the NHS is already getting better, and the budget will continue to support them as they work tirelessly to put patients first.
For the social care sector, today’s budget will enable further action to reduce delayed discharges, as the Cabinet Secretary for Health and Social Care will set out following engagement with local government and health and social care partners. It also provides the resources that are needed to ensure that, where we commission services, those working in adult social care receive, at a minimum, the real living wage.
Once again this year, a bigger share of the health budget is going to primary care. That means that the number of GPs in Scotland will continue to rise, and more GPs will mean easier access. Because we are committed to ending the 8 am rush, the budget contains £36 million to begin the roll-out of new high-street walk-in GP clinics, with the first coming soon. Our ambition is to deliver the best care, at the right time and in the right place, free at the point of need. That includes an on-going expansion of our hospital-at-home programme, so that more people can receive the care that they need in the comfort and security of their own home. Members should have no doubt that we have an NHS in Scotland that is on the path to recovery: an NHS that, after Covid, which was a huge shock to the system, is getting better.
This is a budget that will enable our health services to do more and to do it better. I have no doubt that our constituents will not look favourably—that is an understatement—on any party that cannot bring itself to back a budget that offers so much for our NHS. This is a budget for the wellbeing of our people and the prosperity of our nation: for a society where the needs of people and planet are to the fore.
For the planet, that means that we will continue to play our part in global efforts to tackle the growing climate emergency. That includes an on-going commitment to decarbonise our economy, with investment to support more carbon-free transport and more carbon-free heating for businesses and homes, and to continue the expansion of renewable electricity generation around our shores.
Taken together, we are committing more than £5 billion this coming year towards measures that will reduce Scotland’s carbon emissions, increase our resilience in the face of climate change, and, in many cases, save families hard-earned cash. It is an investment in our landscape and our natural environment: assets that are not only priceless in themselves but are of vital importance economically—I think of the food and drink and tourism sectors, which are flourishing—and are vital to our health and our sense of self, and to our wellbeing in its fullest sense. It is an investment in those who care for our land, in our rural communities and our farmers, including a new package to nurture and develop regenerative and sustainable skills in food and farming.
Our commitment to the planet extends to investment beyond our shores. While others are choosing to reduce their commitment to international development, I am proud to confirm that, in Scotland, we will increase our international development fund by a quarter, to £16 million—different choices, different values.
For our people, this is a budget that delivers record funding to support Scotland’s creative and culture sector. As promised, there is a £20 million increase in the culture budget this year. It is through our songs and our stories that we best express ourselves and best understand ourselves and our place in the world. In these times of uncertainty, when there are so many pressures on family budgets, we can find some solace, and maybe even some much-needed escape, in art, dance, laughter and music and in the shared experience of a concert or festival. Scotland is richer because of our world-famous culture, and the Government stands full square behind our fantastic creative sector.
This is a budget that creates new opportunities for Scots to learn and to flourish. It includes extra funding not only for colleges, but for our universities, including £20 million for the University of Dundee, and an on-going commitment to Scotland’s high-quality apprenticeships, which this year alone will provide more than 31,000 Scots with a pathway to a sustainable, well-paid job. There will be targeted support to ensure that critical skills shortages in our offshore renewables sector are met, and to help retrain workers in the oil and gas sector. This Government is serious about a just transition, and serious about making the most of our renewables opportunity.
I know that many young Scots are struggling to get on the housing ladder and to find affordable homes to rent or buy. We will deliver record levels of investment to help deliver even more homes—a new generation of affordable, liveable energy-efficient homes.
Our plans provide vital support for children with additional support needs and give local councils the resources that they need to continue narrowing the attainment gap and to deliver on our commitments on class contact time. Overall, the funding for local government will increase by 2 per cent in real terms, comparing budget with budget—a settlement that is fair, and which recognises the important role of local government in the delivery of key services. Decisions on council tax rates will, of course, be taken locally. However, this is a reasonable deal and, given the cost of living pressures that we all recognise, I urge local authorities to translate the settlement into reasonable decisions on council tax.
Our ambition is for a society that is strong and an economy that is flourishing. Scotland is a nation of innovators and wealth creators, and this budget is designed to support those whose efforts are essential if our economy is to grow.
The most prosperous future for Scotland means being able to use our resources to deliver a clear competitive advantage for Scottish business, and that is why this Government believes that Scotland’s energy resources should be in Scotland’s hands. There is no good reason why Scottish companies are paying such high energy costs. However, short of independence, there are steps that we can and will take to get more direct benefits from the renewables revolution in our economy. That includes providing resources in the budget to support the creation of a diverse and sustainable supply chain for offshore wind in Scotland. The budget will also provide money to support a just transition for our industrial sector, including targeted investment in the Grangemouth industrial cluster.
We are working with our partners in Shetland Islands Council, Orkney Islands Council and Western Isles Council to agree a new accelerator model—a transformative package of funding that, we believe, can unlock hundreds of millions of pounds of investment in those island communities. Alongside that, our new national islands plan will take forward priority projects, including those relating to clean energy and fixed links, as well as other key infrastructure projects.
Those investments will form part of a capital investment programme worth £7.6 billion, which, given that infrastructure investment is a recognised driver of growth, will deliver significant economic benefits across our economy. The programme includes investment in our railways, with the delivery of new battery electric trains on the Borders and Fife routes, and on-going investment in the most extensive renewal of our ferry fleet since devolution. This year, the investment includes nearly £200 million for the dualling of the A9. I say this loud and clear: the Government is committed to the completion of the A9 by 2035. [Interruption.]