On 4 December 2024, the Scottish Government published its proposed spending and tax plans for the financial year 2025/26. This is the start of the budget process that aims to have the Budget Bill passed by the end of February 2025. This briefing looks at the background and the proposals in the Budget.
While the Barnett consequentials of the UK Autumn Statement are welcome, it will not solve all the long-term funding challenges. Still, it does mark a turn in the right direction after years of austerity have left behind an ailing economy and weakened public services.
The briefing highlights the many pressures on the Scottish Budget and the need for a more strategic approach to government finances.
The Budget presentation raises a number of questions about the funding for key public services next year, not least social care, local government, and education. However, it also looks like the proverbial sofa has been stuffed to leave the Cabinet Secretary some scope for negotiation.
Overall, there is a welcome boost in spending in certain areas, and child poverty and infrastructure have been prioritised. However, funding for public services remains very tight. Many will also feel that this budget looks like another sticking plaster and further long-term thinking is required.