Scotland has vowed to scrap the two-child benefit cap, saying it will lift 15,000 Scottish children out of poverty.
Scotland’s finance secretary Shona Robison also committed to a record investment in the NHS as she unveiled the nation’s draft budget for the coming year in a speech at Holyrood.
The MSP previously said the budget would put “the people of Scotland first”.
Ms Robison told the chamber on Wednesday: “This budget invests in public services, lifts children out of poverty, acts in the face of the climate emergency, and supports jobs and economic growth.
“It is a budget filled with hope for Scotland’s future.”
Highlights from the draft budget:
• The Scottish government will mitigate the impact of the UK government’s two-child benefit cap. Ms Robison has urged Westminster to provide the necessary data to allow for the change to be made. She said: “Let me be crystal clear, this government is to end the two-child cap and in doing so will lift over 15,000 Scottish children out of poverty.”
• The nation’s NHS will receive a record £21bn for health and social care – an increase of £2bn for frontline NHS boards. The investment comes as spending watchdog Audit Scotland warned the NHS is unsustainable in its present state, with a fundamental change “urgently needed”.
• Almost £200m will be invested to reduce NHS waiting times. Ms Robison said by March 2026, no one will wait longer than 12 months for a new outpatient appointment, inpatient treatment or day-case treatment.
• The SNP has ditched its flagship council tax freeze. Local authority funding will be increased by more than £1bn, taking the total amount to more than £15bn. Ms Robison said while it is up to the local authorities to make their own decisions with the funding, there is “no reason for big increases in council tax next year”.
• More than £300m of ScotWind revenues will be invested in jobs and in measures to meet the climate challenge.
• £768m will be invested into affordable homes, enabling more than 8,000 new properties for social rent, mid-market rent and low-cost home ownership to be built or acquired this coming year.
• The Scottish government will also work with the City of Edinburgh Council to “unlock” more than 800 new net zero homes at the local authority’s Granton development site.
• New funding of £4m will be invested to tackle homelessness and for prevention pilots.
• An additional £800m will be invested into social security benefits.
• More than £2.5m will be delivered to support actions within the Disability Equality Action Plan.
• Spending on education and skills will increase by 3% over and above inflation, an uplift of £158m.
• £120m will be provided to headteachers to support initiatives designed to address the poverty-related attainment gap.
• Free school meals will also be expanded to primary 6 and 7 children from low-income families.
• A new initiative titled “bright start breakfasts” will be funded to help deliver more breakfast clubs in primary schools across the country.
• £29m will be invested into an additional support needs (ASN) plan, which will help maintain teacher numbers at 2023 levels and additionally train new ASN teachers.
• Almost £4.2bn will be invested across the justice system. The funding will seek to maintain police numbers. An additional £3m will be made available to help mitigate retail crime amid shoplifting concerns.
• £4.9bn will be invested to tackle the climate and nature crises.
• £25m will be allocated to support the creation of new jobs in the green energy supply chain in Scotland. And to help people at home and work, £300m will be invested in upgrading heating and insulation.
• £90m will be invested to protect, maintain and increase the nation’s woodlands and peatlands.
• £190m will be made available to boost bus services and to make it easier for people to walk, wheel or cycle. The electric vehicle charging network is also to be expanded.
• Almost £1.1bn will be used to maintain and renew the nation’s rail infrastructure.
• £237m will be invested to maintain and improve the nation’s ports, as well as deliver a “more resilient and effective ferry fleet”.
• In rural communities, more than £660m will be used to support farmers, crofters and the wider economy.
• The culture budget will increase by £34m.
• Income tax rates in Scotland have been frozen until 2026.
• The SNP had already confirmed it intends to restore a universal winter fuel payment for pensioners next year. Those in receipt of pension credit or other benefits will receive a £200 or £300 payment, depending on their age. All other pensioners will receive a reduced payment of £100.
The Scottish budget is largely funded through the block grant alongside taxes raised north of the border.
Holyrood has an additional £3.4bn to spend in 2025-26, thanks to cash announced by UK Chancellor Rachel Reeves in her budget in October – taking the overall settlement to £47.7bn.
However, the Scottish budget for 2023-24 amounted to around £59.7bn.
Holyrood ministers are legally obliged to balance the books and have limited borrowing powers with which to raise additional funds.
The draft budget will be scrutinised in the Scottish parliament over the coming weeks before an expected vote in February, where the SNP will need to garner support from outside its minority administration for it to pass.
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Following her statement, Ms Robison said she was looking forward to working with the opposition parties.
She added: “I am proud to present a budget that delivers on the priorities of the people of Scotland.
“Parliament can show that we understand the pressures people are facing.
“We can choose to come together to bring hope to people, to renew our public services, and deliver a wealth of new opportunities in our economy.”
In response, the Scottish Greens said it will not back the proposed budget “as things stand”.
Ross Greer, the party’s finance spokesperson, cited its failure to expand free school meals for all P6 and P7 pupils.
The MSP said: “The government has agreed to more modest Green proposals like free ferry travel for young islanders, free bus travel for asylum seekers and higher tax on the purchase of holiday homes, but these measures are not nearly enough to make up for the cuts elsewhere.
“Big changes will be needed if they expect the Scottish Greens’ support.”
IPPR Scotland welcomed the intention to scrap the two-child benefit cap, as did Oxfam Scotland.
However, the charity criticised the Scottish government’s failure to implement a tax on “pollution spewing private jets” and is calling on ministers to “turbocharge talks with the UK government in order to give the tax clearance for take-off as soon as possible”.
Meanwhile, the Scottish Conservatives branded it “more of the same from the SNP”.
Craig Hoy, the party’s shadow cabinet secretary for finance, said: “Taxpayers are paying the price for years of SNP waste on ferries, gender reforms, failed independence bids, and a National Care Service that has already cost £30m.”
The MSP said the NHS is on its knees and needed “urgent reform”.
He added: “The extra funding is welcome but our NHS needs more than money, it needs leadership and a serious plan to reduce waiting lists, yet the SNP’s only proposal is rehashing a previous broken promise.
“The Nationalists have no vision for the future of the country and it’s clear John Swinney is out of ideas.”
The Scottish Tories also said the two-child benefit cap is “necessary”.
MSP Liz Smith, the party’s shadow social security secretary, said: “Social security payments must be fair to people who are struggling and to taxpayers who pick up the bill.
“We believe the two-child cap is necessary and the right approach at this time.
“The rapidly rising benefits bill is currently unsustainable as a direct consequence of the SNP’s high tax rates and mismanagement of our economy and public finances.”
