Local authorities across Scotland are set to receive a record-breaking funding settlement of over £15 billion, according to provisional allocations outlined in the 2025-26 Budget.
The settlement represents a real-terms increase, with £289 million earmarked to meet local needs and £120.5 million allocated to support pay deals.
An additional one-off payment of £40 million has been designated to help councils tackle the climate emergency, reflecting the growing importance of environmental action.
Other targeted funding includes support for free personal care, maintaining teacher numbers, and addressing the unique challenges faced by island communities.
Finance Secretary Shona Robison highlighted the significance of the funding boost, stating:
“Our Budget is laying the foundations for Scotland’s future success, with investment to help improve the public services that people rely on.”
Ms Robison emphasised the essential role local authorities play in delivering key services such as schools and social care, adding that the settlement reflects the government’s commitment to supporting these priorities.
Compared to last year’s Budget, council funding has risen by more than £1 billion, a move the Finance Secretary described as a result of collaborative engagement with COSLA and local councils.
The increase in funding, combined with record allocations, is expected to alleviate pressure on councils, potentially avoiding significant hikes in council tax rates.
“This is a Budget that will deliver increased funding for schools, social care and other vital council services,” Ms Robison said, urging Parliament to back the proposals to ensure communities can benefit.
While the settlement awaits final approval, it signals the Scottish Government’s focus on strengthening local services and addressing critical issues, including the climate crisis.
The Budget’s passing will mark a significant step in bolstering support for communities and enhancing public services nationwide.
