Finance Secretary Shona Robison will unveil the Scottish Budget for 2025-26 in a speech to the Scottish Parliament on 4 December 2024. This announcement will outline plans for taxes, welfare benefits, and public spending in a challenging financial climate.

Budget Context

• Ministers describe this as the toughest budget since the Scottish Parliament’s reconvening in 1999, citing inflation, increased public sector pay, and limited borrowing powers.
• The UK government has allocated a block grant of £47.7bn, a £3.4bn rise from the previous year, but ministers argue it falls short given Scotland's larger public sector demands.
• Economists suggest this funding increase may ease budget pressures, but additional costs, like Labour’s planned rise in National Insurance, could strain resources.

Key Proposals to Watch

1. Income Tax:
   • Scotland’s six tax bands differ from the rest of the UK, with higher earners paying more.
   • Potential tax changes are unlikely, though fiscal drag could push more taxpayers into higher brackets.
2. Council Tax:
   • A nationwide freeze in 2024-25 relieved homeowners but strained councils. A similar measure may be considered.
3. Winter Fuel Payments:
   • The government may revisit plans to restore universal coverage after a UK-wide shift to means testing affected Scottish pensioners.
4. Business Rates:
   • Calls for relief similar to measures in England could impact funding for local services.

When and Where to Watch

The Scottish Budget speech will take place on 4 December at 14:00, broadcast live on the BBC Scotland News website, followed by opposition responses.

This budget will shape Scotland’s fiscal policy for 2025-26, addressing economic pressures and funding vital services like health, education, and infrastructure.