Meeting of the Parliament 25 February 2026 [Draft]
I am pleased to open the stage 3 debate on the Budget (Scotland) (No 5) Bill. Before turning to the substance of the debate, I want to thank those whose work has brought us to this point: the Finance and Public Administration Committee and all the parliamentary committees that have applied rigorous scrutiny to the budget; the Scottish Fiscal Commission, which provides the independent forecasts that underpin our decisions; and the officials across the Scottish Government whose dedication ensures that a publication of such a scale can be delivered. I am also grateful to the First Minister and Cabinet colleagues for their support throughout, and to those Opposition members who have engaged constructively throughout the process.
Turning to the substance of the debate, I want to begin where all meaningful public work must begin—with the people whose lives are shaped by what happens in this chamber. Every decision that we take shapes the lives of people across Scotland—their daily experiences, the services that they rely on and the opportunities that they hope for.
As Parliament is aware, the fiscal and economic context remains highly challenging. Even in the past three years alone—the period for which I have served as Cabinet Secretary for Finance and Local Government—we have faced sustained inflation, higher interest rates, pressure on household incomes and increasing costs for public services. Despite that, we have focused on practical action to support people, to strengthen our economy and to build resilience.
We can see the results of that approach in Scotland’s economic performance. For 10 consecutive years, Scotland has been the leading place in the United Kingdom, outside London, for inward investment, and independent assessments have confirmed that the Scottish Government has a high investment grade credit rating.
Our income tax policy for 2026–27 will continue to protect the majority of taxpayers while supporting the investment that is needed in our public services and the social contract. We are maintaining our commitment to shield those on lower incomes: more than half of taxpayers are expected to pay less in Scotland than they would elsewhere in the UK.