Edinburgh (Parliament Politics Magazine) January 13, 2026 – Deputy First Minister Shona Robison presented the Scottish Budget 2026-27 allocating £58.5 billion total expenditure despite UK government funding constraints. Scottish Child Payment increases to £40 weekly for babies under one year representing targeted child poverty intervention. NHS Scotland receives £21.3 billion operational funding plus £1.2 billion capital investment for infrastructure renewal.
Shona Robison delivered the budget speech acknowledging 1.8 percent real-terms revenue reduction from Westminster allocations. Local government funding protected at £13.5 billion flat cash settlement supporting council services. Council tax freeze extended fifth consecutive year delivering £150 average household saving.
Budget implementation commences April 1 following parliamentary approval process.
Political editor Paul Hutcheon highlighted the enhanced infant payment provision. Paul Hutcheon said in X post,
“NEW: The SNP Government announce the Scottish Child Payment will be boosted to £40 a week for babies under one, a targeted move designed to tackle child poverty.”
NEW: The SNP Government announce the Scottish Child Payment will be boosted to £40 a week for babies under one, a targeted move designed to tackle child poverty.
— Paul Hutcheon (@paulhutcheon) January 13, 2026
Enhanced Scottish Child Payment Targets Infant Poverty Reduction
As reported by Jenness Mitchell of Sky News, the Scottish government plans a £68bn investment to support citizens’ welfare. Scottish Child Payment rises to £40 weekly for children under one year old. Standard rate increases 9.7 percent to £25.70 weekly for children aged one to sixteen. Enhanced infant payment delivers £2,080 annually per eligible baby supporting 35,000 families.
Social Security Scotland administers payments through existing claimant infrastructure. Eligibility aligns with Child Disability Payment and Child Winter Heating Payment recipients. Backdating covers three months ensuring seamless access for new parents.
Annual programme cost totals £1.4 billion funded through progressive taxation framework. Child poverty strategy allocates additional £30 million localised interventions.
Columnist Kenny Farquharson noted the strategic focus of infant payment enhancement. Kenny Farquharson said in X post,
“Increase in child payment to £40 a week for babies up to age of one. This a clever way to focus on where need is greatest without compounding the payment’s flaws.”
Increase in child payment to £40 a week for babies up to age of one. This a clever way to focus on where need is greatest without compounding the payment’s flaws.
— Kenny Farquharson (@KennyFarq) January 13, 2026
NHS Scotland Receives Record Operational and Capital Funding
NHS resource funding reaches £21.3 billion delivering 2.5 percent real terms growth. Capital allocation totals £1.2 billion prioritising hospital replacement programmes. Elective care waiting list reduction receives £500 million tackling 180,000 patient backlog.
Mental health allocation expands to £1.5 billion supporting a 24/7 crisis centre network. Primary care investment creates 500 additional weekly GP appointments. Delayed discharge initiative frees 1,200 hospital beds through community care expansion.
Health board allocations distributed through a weighted population formula. Golden Jubilee National Hospital expansion delivers 200 cardiology procedures capacity.
Local Authority Settlement Protects Essential Frontline Services
Council revenue funding maintained £13.5 billion flat cash real terms position. General revenue support grant totals £10.2 billion across 32 local authorities. Adult social care receives £1.1 billion ringfenced protecting workforce recruitment.
Council tax policy freeze benefits 1.3 million households averaging £150 annual household saving. Homelessness prevention budget grows £50 million housing 5,000 households yearly. Roads infrastructure maintenance allocates £300 million resurfacing 2,500 miles annually.
Performance monitoring frameworks track quarterly expenditure compliance.
Education Sector Funding Maintains Teacher Numbers and Attainment
Schools Day-to-Day expenditure totals £4.8 billion securing 49,000 full-time equivalent teachers. Pupil Equity Fund expands to £1 billion targeting lowest twenty percent SIMD postcodes. Free school meals universal provision extends P6-P7 across deprived communities.
Higher education teaching grants protected £1.7 billion guaranteeing 50,000 places. Student financial support package delivers £30 million maintenance bursary uplift. The modern apprenticeship programme targets 35,000 starts through levy funding.
College stabilisation measures allocate £150 million preventing programme reductions.
Justice System Investment Addresses Capacity and Modernisation
The justice portfolio budget rises to £5.2 billion incorporating Police Scotland core funding protection. Scottish Prison Service receives £450 million creating 500 additional places addressing overcrowding. Safer Drug Consumption Facilities pilot funded £10 million Glasgow implementation.
Police frontline strength maintained 16,750 officers through a £1.3 billion allocation. Fire and Rescue Service modernisation invests £80 million appliance fleet replacement. Crown Office receives £25 million digital case management transformation.
Twenty community justice centres established reducing recidivism through diversion programmes.
Net Zero Transition Funding Supports 2045 Carbon Reduction Target
Climate portfolio totals £2.1 billion delivering statutory emissions reduction commitments. Green Freeports expansion creates 15,000 direct employment opportunities across zones. Social housing retrofit programme upgrades 25,000 homes with heat pump technology.
Just the Transition Authority budget reaches £100 million regional skills infrastructure. Offshore wind seabed leasing rounds allocate capacity for 15GW generation development. Circular economy investments total £200 million waste processing facility upgrades.
Peatland restoration programme expands 500,000 hectares enhancing natural carbon sequestration.
Capital Infrastructure Programme Drives Economic Connectivity
£7.2 billion capital budget prioritises transport and housing delivery. A9 Perth-Inverness dualling completion scheduled 2028 milestone delivery. Aberdeen bypass maintenance contracts award £150 million carriageway resurfacing programme.
Affordable housing investment constructs 15,000 public sector homes annually. Digital Scotland Superfast extension connects 95 percent rural premises gigabit broadband. Active Free Travel network delivers 500km segregated cycling infrastructure.
Strategic transport review approves £500 million prioritisation across forty projects.
Progressive Taxation Framework Generates Additional Revenue
Income tax higher bands maintained generating £2.1 billion from top earning cohorts. Land Buildings Transaction Tax threshold rises to £250,000 first-time buyer relief. ScotWind Rounds II-III auction proceeds deliver £750 million capital receipts.
Offshore petroleum levy projects £400 million annual revenue stream. Council tax band D cap set 2.9 percent inflation adjustment maximum. Budget Balance Mechanism activates £1.2 billion UK Treasury facility access.
Fiscal transparency publishes quarterly revenue expenditure performance dashboards.
Devolved Welfare System Expands Poverty Alleviation Measures
Scottish Child Payment constitutes the largest devolved social security benefit internationally. Carer’s Allowance Supplement quarterly payment rises to £320 supporting 7,000 recipients. Winter Fuel Payment eligibility extends to 100,000 additional pensioners.
Best Start Foods grocery grant increases 10 percent new parent support package. Funeral Support Payment maintains £1,000 inflation-linked contribution level. Adult Disability Payment full migration completes March 2026 transfer timeline.
Social Security Scotland employs 3,500 processing 1.2 million applications annually.
Economic Growth Initiatives Support Business Competitiveness
Made in Scotland manufacturing grants award £100 million factory modernisation. Visitor Destination Fund invests £80 million tourism accommodation refurbishment. Scottish Enterprise budget totals £220 million enterprise growth programmes.
South Scotland Economic Partnership receives £25 million rural enterprise development. Export Ignite programme delivers 5,000 business internationalisation diagnostics. Regional Selective Assistance approves £75 million capital investment job creation projects.
Supply chain resilience fund supports £50 million critical sector diversification.
Parliamentary Timeline Guides Budget Legislation Passage
Stage 1 scrutiny debate convenes January 28 full chamber consideration. Finance Committee Stage 2 amendments conclude February 11 opposition motions. Final budget approval vote scheduled March 5 financial year commencement.
£1.0 billion contingency reserve addresses expenditure forecast variances. Quarterly fiscal frameworks publish performance against allocations. Implementation guidance issued April 1 public body compliance.
Stakeholder engagement forums coordinate delivery across thirty portfolios.
Fiscal Commission Forecasts Underpin Revenue Projections
Scottish Fiscal Commission projects £88.2 billion total revenue collection 2026-27. Block grant adjustment deducts £4.5 billion devolved taxation revenues. Fiscal framework negotiations govern No Detriment funding methodology.
Capital borrowing capacity exercises £3.0 billion within statutory limits. Revenue Volatility Fund protects £250 million against tax fluctuations. Reserve provision maintains £400 million emergency expenditure capacity.
Quarterly Fiscal Framework Implementation Group monitors delivery metrics.
Public Sector Remuneration Policy Delivers Pay Uplift Settlements
Four-point-five percent pay policy award covers 400,000 devolved public workers. NHS Agenda for Change backdated uplifts commence February payrolls. Teacher salary scales progress five-point-two percent experienced practitioners.
Police remuneration rises four-point-eight percent addressing recruitment challenges. Local government settlement distributes £120 million living wage adjustment. Prison officer harmonisation aligns civilian grade equivalents across services.
Independent pay review bodies publish annual recommendations across functions.
Gender Mainstreaming Integrates Across Budget Decision-Making
Gender impact assessments accompany all portfolio allocations transparently. Childcare infrastructure delivers £700 million female employment participation uplift. Violence Against Women funding totals £150 million safe accommodation provision.
Equal pay compliance audits monitor public sector authorities quarterly reporting. Women’s Enterprise Scotland grants £20 million female business formation. The Period Poverty elimination programme distributes sanitary products universally across schools.
Intersectionality framework incorporates multiple protected characteristics analysis systematically.
Rural and Islands Economic Development Receives Priority Funding
Agriculture Transformation Fund invests £350 million farm business diversification pathways. Crofting Reform Bill stimulus package delivers £25 million tenure security measures. Rural gigabit broadband connects 95 percent remote premises coverage.
Food Drink Export Growth Fund supports £10 billion annual sector contribution target. Forestry Land Scotland planting programme expands 15,000 hectares native species. Seafood Processing Infrastructure Fund invests £50 million resilience upgrades.
Caledonian MacBrayne fleet replacement programme receives £100 million islands connectivity investment.
Key Spending Plans from Scottish Budget 2026
- The Scottish government allocates nearly £68bn for public services, infrastructure, and wellbeing.
- Total investment, including Scottish Spending Review, reaches almost £200bn.
- Scottish Child Payment for children under one rises to £40/week, effective 2027-28.
- Two new council tax bands planned for properties over £1 million by 2028.
- Private jet owners to face new tax for fair contribution.
- Colleges receive £70 million extra funding, a 10% increase.
- Communities affected by Mossmorran Fife Ethylene Plant closure get £9 million over three years.
- Orkney and Shetland islanders benefit from scrapped peak ferry fares.
