The UK Budget was published on 26 November 2025, with implications for next year’s Scottish Budget, which is expected on 13 January 2026. In this briefing, we examine the impact of the UK Budget and the financial challenges facing the Scottish Government.
The Barnet consequentials of the UK Budget and the abolition of the two-child cap provide some relief for the Finance Secretary as she prepares the Scottish Budget. However, in the medium term, there remains a significant funding gap, not helped by sluggish economic growth. Meanwhile, budget pressures to further reduce child poverty, rebuild council services and tackle delayed discharges remain. This all points to the need for radical reform of devolved taxation rather than more tinkering at the edges.
Dave Watson also had an opinion piece published in The National on this issue, on behalf of the Tax Justice Scotland campaign.