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Friday, February 20, 2026

Scottish Budget Pledges Investment for Highlands Public Services

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New funding for health, transport and local government in the Highlands has been outlined as part of the Scottish Budget.

Subject to parliamentary approval, £5 million has been allocated to support progress on the Belford Hospital project, while £10 million will go towards improving ferry services serving island and coastal communities.

A bus fare cap pilot will also be introduced across the Highlands and Islands, aimed at making travel more affordable, particularly for low-income households, while encouraging more sustainable transport use.

The Budget includes record funding settlements for local authorities in the region.

Highland Council is set to receive £660.2 million for 2026/27, an increase of £39.2 million compared to the previous year.

Moray Council will receive £244.6 million in 2026/27, described as a record funding package.

Finance Secretary Shona Robison said:

“We have placed public services at the heart of our Budget, delivering record funding for local authorities to help deliver sustainable and efficient services that communities deserve.

“This supports our wider work to eradicate child poverty on a national scale, reducing the pressure of the cost of living crisis and continues to protect this government’s social contract, securing the best possible deal for those who live in Scotland.”

The measures form part of the wider Scottish Budget, which ministers say prioritises public services and cost of living support.

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Joseph Kennedy
Joseph Kennedy
Joseph Kennedy is a senior writer and editor at The Highland Times. He covers politics, business, and community affairs across the Highlands and Islands. His reporting focuses on stories that matter to local people while placing them in a wider national and international context.
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