Meeting of the Parliament 12 February 2026 [Draft]
I had an excellent meeting with COSLA group leaders yesterday, including the Conservative group leader, and I have had lots of messages today welcoming the money for the real living wage and the additional money for social care.
It will go on the record that Craig Hoy does not welcome anything in the budget. All the money for affordable housing, all the money to support businesses, all the money to support children and families—Craig Hoy does not support a penny of it. I think that that will haunt him for some time to come.
We have also been transparent that this is a budget in which we have had to make difficult choices. With increasing demand on public services and low funding growth, there have to be trade-offs. However, I am confident that the choices that we have made are ones that will secure a fair, healthy and prosperous society for Scotland’s people.
Tackling child poverty remains the Government’s top priority, and the budget sets out investment that will make a material difference to families across Scotland. For example, by August 2027, we will deliver a universal breakfast club offer for primary school children and will increase wraparound activity clubs for those children. We are also investing more than £111 million in our tackling child poverty fund and in whole family support to provide wraparound support to families in poverty.
Support for the most vulnerable includes universal services such as free prescriptions and university tuition—services that this Government chooses to continue to invest in.
I turn to non-domestic rates. I committed to passing on to hospitality any additional consequential funding from the United Kingdom Government’s recent announcement on business rates for pubs and music venues in England. We consulted the business community prior to finalising our package, and I confirm that the Scottish Government will provide 25 per cent additional relief for the next three years for licensed hospitality and music venues that are on the basic or intermediate property rates, including pubs, restaurants, hotels, nightclubs and licensed clubs.
Along with the 15 per cent relief for the retail, hospitality and leisure sectors for properties on the basic or intermediate property rate, which was announced at the budget, total relief for eligible licensed hospitality premises and music venues will be 40 per cent for the next three years—capped at £110,000 per business per year. The Scottish Fiscal Commission will cost that, but we estimate that it will provide about £9 million of additional support during 2026-27.
I have also listened to concerns that have been raised by those in the self-catering sector. I will introduce a specific revaluation transitional relief for that sector, which will cap increases in gross liabilities due to revaluation at 15 per cent year on year, up to the next revaluation.