Budget Bill passed as Scotland's GDP shows minor growth

The Scottish Parliament has approved the 2025-26 Budget, which allocates nearly £90 million across various initiatives.

Key investments include £7 billion for infrastructure, £2 billion for colleges, universities, and skills, and an additional £25 million for the Grangemouth Industrial Cluster.

The 2025-26 Scottish Budget has been approved by Parliament, including £21.7 billion for health & social care and more than £15 billion for local councils, alongside social security measures supporting an estimated two million people.

The Budget invests:

• £21.7 billion in health and social care services, including almost £200 million to cut waiting times and help reduce delayed discharge
• £6.9 billion in social security, expected to support around two million people in 2025‑26
• £4.9 billion in climate-positive investment
• more than £7 billion for infrastructure
• more than £2 billion for colleges, universities and the wider skills system
• an additional £25 million to support the Grangemouth Industrial Cluster, taking total investment to almost £90 million

Finance Secretary Shona Robison said:

“I am pleased that Parliament has approved the Scottish Government’s Budget – confirming plans to invest in public services, lift children out of poverty, act in the face of the climate emergency and support jobs and economic growth.

“This is a Budget by Scotland for Scotland. It includes record NHS investment, social security spending to put money in the pockets of low income families and action to effectively scrap the two-child benefit cap next year. We are delivering a universal winter heating payment for the elderly, providing record funding for local government and increasing investment in affordable housing.

“This Budget has been developed through effective engagement and negotiation across Parliament to build broad support. It is through this compromise that we are delivering spending plans that will most effectively strengthen services and support Scotland’s communities.”

When the Budget was proposed in December, SCC said: “Providing urgent rates relief for the hospitality sector is an essential step and we are pleased the Scottish Government has listened to our calls to take action.

"However, whilst we understand the tough choices the government had to make... Shona Robison has recognised the difficulties and many obstacles confronting businesses but this budget doesn’t go far enough to help us to protect jobs and deliver the innovation, investment and growth Scotland so desperately needs."

The announcement coincides with 0.6% GDP growth in December 2024, following a revised 0.2% rise in November. Quarter 4 GDP remained flat (0.0%) after 0.4% growth in Quarter 3, while annual GDP rose 1.1% in 2024.

Deputy FM Kate Forbes called the figures “encouraging,” expecting capital spending increases to boost growth in 2025.