The Chancellor of the Exchequer, John Healy, delivered his first budget on 28 October 2026. This gives the Scottish Budget a little more time than usual, and it will be announced on 3 December 2026. This briefing looks at the UK Budget and the implications for Scotland.
The very different spin on the benefits for Scotland from both governments can confusingly both be true. The Scottish Government has more to spend in 2027-28, but this still equates to a real-terms fall between 2026-27 and 2027-28. However, the real-terms fall in 2027-28 is because they are getting more money this year. It all depends on where you take the comparison. The Scottish Government will have to make judgements on how to implement, or not, UK measures that are devolved.
We make the case for wealth taxes in Scotland, including a revaluation of the council tax, and bringing forward the Private Jet Supplement. Public sector reform will not deliver immediate savings and the government should resist calls to cut progressive income tax.