Scotland’s finance secretary has begun to unveil the nation’s draft budget for the coming year.

Shona Robison is setting out the Scottish government’s tax and spending plans for 2025-26 in a speech at Holyrood.

The MSP previously said the budget will 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 nation’s NHS will receive a record £21bn for health and social care – an increase of £2bn for frontline NHS boards.

• 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.

• An additional £800m will be invested into social security benefits.

• £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.

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 SNP has already confirmed plans to use some of the funding to restore a universal winter fuel payment for pensioners next year.

Under the plans, 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 SNP’s flagship council tax freeze is expected to be ditched.

The budget comes as spending watchdog Audit Scotland warned that the NHS is unsustainable in its present state, with a fundamental change “urgently needed”.

Finance Secretary Shona Robison during a visit to Logan Energy Limited in Edinburgh ahead of the publication of the Scottish Budget. Picture date: Wednesday December 4, 2024.
Image:
Ms Robison during a visit to Logan Energy in Edinburgh earlier on Wednesday. Pic: PA

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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