The Scottish Government has unveiled its 2025-26 budget prioritising investment in public services, housing and climate action. With significant investments across these sectors the government aims to address immediate challenges while fostering long-term economic and environmental resilience.
A key highlight of the budget is the allocation of £768 million to housing, marking a return to spending levels higher than two years ago. This funding will support the delivery of over 8,000 affordable homes, including social rent, mid-market rent, and low-cost ownership options. The funding seeks to tackle Scotland’s housing crisis, providing stability for families and individuals while stimulating the housing development sector. To further support housing and sustainability, an additional £300 million has been allocated to improve heating and insulation in homes, reducing carbon emissions and combating fuel poverty.
The NHS in Scotland is set to benefit from a record £21 billion in funding for 2025-26, with a £2 billion increase for frontline NHS boards. This historic funding boost underscores the government’s commitment to enhancing healthcare delivery, ensuring the system can meet increasing demands and provide high-quality care.
Tackling the climate emergency has remained a central focus for the Scottish Government, with £4.9 billion in funding for renewable energy projects, green initiatives and sustainability programs. The Scottish Government has outlined the priority for a 'green reindustrialisation' of Scotland with capital spend totalling £7 billion. This years budget will almost triple investment in offshore wind to £150 million next year to leverage private investment of £1.5 billion and establish a Scottish Government hub for offshore wind in the North East.. In addition, the Government will invest more than £300 million from ScotWind revenues into creating green jobs and funding climate action measures, reinforcing Scotland’s leadership in the transition to a low-carbon economy.
Through investments in housing, healthcare and climate action, the Scottish Government has outlined its aims to address pressing challenges while laying the foundation for a resilient and prosperous future for Scotland. The budget will now be scrutinised by parliament with the final vote taking place in the new year. As a minority administration, the SNP Scottish Government, will seek allies to vote for this budget to pass or hope for abstentions to avoid an early Holyrood election.
A key part of our role is offering strategic counsel and bespoke political analysis to our clients, translating what political news and policy developments mean for their business. If you would like to find out more about how we can help your business navigate public affairs, please get in touch and say hello@orbit.scot