The Scottish Government has set out a wide ranging package of record investment across local government, health, housing, and education as part of the draft Budget for 2026 to 27.
Ministers say the plans are focused on protecting public services, tackling child poverty, and supporting households through the cost of living crisis.
At the centre of the Budget is a record Local Government Settlement worth almost £15.7 billion, providing councils with increased funding to deliver frontline services.
The settlement follows extensive engagement with local authorities and COSLA and honours commitments on pay deals, the Real Living Wage in commissioned services, and support for inter island connectivity.
Finance and Local Government Secretary Shona Robison said the settlement reflects collaboration with councils and recognises the pressures they face.
“Delivering sustainable public services that meet the needs of communities is at the heart of our priorities.
“This record settlement is the result of meaningful budget engagement with COSLA and councils.
“We recognise the financial challenges that local authorities face, which is why we have provided a Budget which builds on the Verity House Agreement and Fiscal Framework agreement.
“We will continue to collaborate with local government to ensure everyone has access to services that are efficient, good quality and effective.”
Alongside council funding, the draft Budget includes record investment in health and social care, with almost £22.5 billion allocated across the portfolio.
This includes £17.6 billion for NHS Boards, representing an average real terms uplift of 1.8 per cent.
The funding will support additional capacity, including expanding Hospital at Home beds to at least 2,000 by the end of the year.
Further health measures include £2.4 billion for primary care, £36 million for new walk in GP services, and a £531 million three year funding deal for General Practice.
An additional £40 million will be invested in sport and physical activity, while social care spending will reach £2.3 billion, exceeding the Government’s commitment to increase spending by 25 per cent by the end of the Parliament.
Health Secretary Neil Gray said the investment will help reform services and improve access.
He said: “We want the people of Scotland to live healthier, longer lives.
“Our plans for walk in GP services are backed by £36 million and will look to provide additional same day access for communities.
“I firmly believe our NHS has turned a corner and this draft budget will enable us to build on this improvement.”
The Budget also delivers record investment in affordable housing, with a £158 million increase compared to last year.
A total of £926 million has been allocated to the Affordable Housing Supply Programme for 2026 to 27, 20 per cent higher than the previous year.
Over the next four years, up to £4.9 billion will be invested to help deliver 36,000 affordable homes, including a record £4.1 billion of public sector funding.
Additional housing measures include £106 million for Discretionary Housing Payments, £8 million for rapid rehousing transition plans, funding to support women and children experiencing domestic abuse, and further investment in homelessness prevention.
Housing Secretary Màiri McAllan said the funding marks a major step forward.
“This is the biggest total funding allocation to affordable housing in Scotland since records began.
“Our investment is rooted firmly in our top priority of eradicating child poverty and is a critical investment in growing our economy.”
Education and skills also feature strongly, with £3.5 billion allocated across the portfolio.
The Budget includes additional funding for colleges and universities, protection for teacher numbers, and continued support for early learning and childcare.
College funding will increase by £70 million, a 10 per cent uplift, while universities will see funding rise by more than £55 million.
Up to £200 million will support the Scottish Attainment Challenge, with further funding for breakfast clubs, additional support needs, and local pilots to reduce class contact time.
Education Secretary Jenny Gilruth said the focus is on impact and outcomes.
“This is a Budget that targets investment where it has the greatest impact in maintaining our focus on attainment and skills.
“This budget builds on gains already made by protecting teacher numbers, supporting workforce stability, and ensuring high quality teaching and learning in schools.”
The publication of the Budget marks the start of the formal consultation period, with final allocations subject to approval by the Scottish Parliament in the coming weeks.
