Scottish Budget 2026-27 - Key Points at a Glance

13th January 2026

Income Tax

New 45p tax band introduced for earnings £75,000-£125,140.

Top rate rises to 48p above £125,140.

Lowest three tax bands unchanged

Expected to raise around £1.5 billion

Health & Social Care

£550 million extra for the NHS

Total health spending rises to over £13.2 billion

Continued funding for tackling waiting lists and frontline services

Local Government

Council tax freeze funded

Overall council funding up by around 5 %

£144 million allocated to support the freeze

Councils warn funding may still fall short in real terms

Social Security & Cost of Living

Social security spending rises to £6.3 billion

Includes funding for:

Scottish Child Payment

Disability and carers' benefits

Commitment to clear school meal debt

Housing & Transport

Continued investment in affordable housing

Support for public transport, including bus services

Business Support

Business rates relief maintained for smaller firms

Targeted support for hospitality and island communities

Fiscal Context

Budget delivered amid tight finances

Scottish Fiscal Commission warns of ongoing pressure on public services

Opposition parties and councils question long-term sustainability

Political Context

Budget framed as "fair and progressive" ahead of May's Scottish election

SNP positioning: higher taxes on the wealthiest to protect services