Scottish budget unveiled with child payment boost and mansion tax for £1m homes

The Scottish government has unveiled its draft budget for 2026-27 - with a boost to the Scottish Child Payment and homes worth more than £1m to face higher council tax bills.

Finance Secretary Shona Robison set out the SNP administration's spending and tax plans for the coming year in a speech at Holyrood on Tuesday. The draft proposals come just four months before the Scottish parliament election, with the SNP aiming to entice voters to keep them in power so that the party can fulfil its plans.

It is Ms Robison's final budget before she stands down as an MSP at the May election. Highlights from the draft budget: • There will be an investment of almost £68bn in the budget for the wellbeing of those in Scotland.

When combined with the Scottish Spending Review and Infrastructure Investment Pipeline, there will be a total investment of almost £200bn;• The Scottish Child Payment will be increased to £40 per week for families with a child under the age of one. The change will come into force at the beginning of the 2027-28 year.

It is currently £27.15 per week;• There will be two new council tax bands by 2028 and will be paid on properties worth more than £1m;• Funding for local government will increase by 2% in real terms. Ms Robison branded the settlement "fair" and a "reasonable deal" as she urged local authorities to translate the funding into "reasonable decisions on council tax";• A tax cut has been provided to low earners.

The basic (20%) rate, which currently starts at £15,398, and the intermediate rate (21%), which currently starts at £27,492, will increase by 7.4% to £16,537 and £29,526 respectively;• A total of £22.5bn has been set aside for health and social care, including a record £17.6bn for the NHS's frontline services, £2.4bn to support the vital work of GPs, primary care and community services, and more than £2.3bn to aid social care;• Basic, intermediate and higher property rates will be reduced for businesses as well as transitional relief of £184m over the next three years for those impacted by the recent revaluation. There will be 15% non-domestic rates relief in 2026-27, worth £138m over three years for retail, hospitality and leisure premises, capped at £110,000 annually, while similar firms on Scotland's islands will be given 100% relief;• The Scottish government will establish a tax for private jets at some point after April 2027.

Ms Robison said: "To those who choose to travel by private jet, in Scotland you will pay, and you will pay a fair share for that privilege";• Colleges will see a 10% increase in funding, delivering an extra £70m this year;• Funding will be provided so that by August 2027 every primary and additional support needs (ASN) school will have a breakfast club;• Communities impacted by the closure of the Fife Ethylene Plant (FEP) at Mossmorran will receive targeted support of £9m over the next three years;• Orkney and Shetland islanders will benefit from plans to scrap peak fares on Northern Isles ferries;• Nearly £200m will be spent on dualling the A9. Ms Robison said the government was "committed" to dualling the road by 2035.

Ms Robison said: "This is a budget for a stronger NHS, a budget for a more prosperous Scotland, a budget that, once again, gives the people of Scotland the best cost of living deal anywhere in the UK. "It is a budget that offers new ways to access a GP with walk-in GP clinics, new help for hard-pressed families with more wraparound care, new hope for young Scots looking for their first home, more operations, more appointments in our NHS, more people paying less income tax because they live here in Scotland.

"New help and more help - it's a budget for families, a budget for Scotland and a budget well worth voting for." 'Super-rich no longer get free pass to pollute Scottish skies' Jamie Livingstone, head of Oxfam Scotland, welcomed the private jet tax and said it sends a clear message that "the super-rich will no longer get a free pass to pollute Scottish skies". Claire Telfer, head of Scotland at Save the Children, said the charity was delighted by the boost to the Scottish Child Payment.

She said: "Investing in the tiniest members of our society - alongside the other commitments made to tackle child poverty - is how we sow the seeds of a brighter tomorrow." The Joseph Rowntree Foundation also praised the child payment increase but warned "a lot of work" still needs to be done. Chris Birt, associate director for Scotland, said: "This should go some way to addressing the shocking fact that over a third of babies in Scotland currently live in a household in poverty.

"However, given the extent of the struggles that families are facing right now, the rest of the poverty-related funding announced in the budget doesn't meet the scale of action required, with a disappointing lack of detail on how it will be spent and how that will impact on people's lives. "This budget marks another missed opportunity to take the bold and radical action needed." Think tank IPPR Scotland branded the budget "tepid" as it called for a long-term tax strategy that will be able to meet the needs of the nation's people "while addressing the looming fiscal gap".

The Scottish Conservatives described it as "cynical and predictable". MSP Craig Hoy, the party's shadow finance secretary, added: "Shona Robison's tinkering with the lower rate tax bands produces paltry and insulting savings for some, while middle-earners will be clobbered harder than ever before.

"Hard-working Scots are paying the price for the SNP's skewed priorities - with the out-of-control benefits bill continuing to grow and a huge rise in overseas development spending." Holyrood ministers must balance the books The Scottish budget is largely funded through the block grant alongside taxes raised north of the border. It sets the annual funding for Scotland's health, education, justice, transport and welfare systems, as well as any tax changes.

Holyrood ministers are legally obliged to balance the books and have limited borrowing powers with which to raise additional funds. Scotland's auditor general previously warned the country faces a near £5bn funding shortfall by the end of the decade.

The draft budget will be scrutinised in the Scottish parliament over the coming weeks before a final vote, where the SNP will need to garner support from outside its minority administration for it to pass into law. It has been speculated that Scottish Labour could abstain after party leader Anas Sarwar said his MSPs would not stand in the way of the budget, effectively allowing it to pass.

Mr Sarwar is instead focused on the Holyrood election, with expectations he will announce an emergency budget if his party gets into power. Recent polling puts the SNP in first place, although not enough for a majority, with Reform UK and Scottish Labour in second and third place respectively..