The SNP Scottish Government has published its draft Budget for 2026 – 27. This being an election year will this Budget be a winner for the SNP as it aims to retain control of the Scottish Parliament ?

Most people will be paying less Income Tax and Local Authorities will receive almost £15.7 billion to deliver key public services. For Orkney, the smallest council in Scotland it will get a 13.07% increase in funding, the largest increase for any council in Scotland. NHS Boards will have an increase in funding and as part of its pledge to combat child poverty, every primary pupil in Scotland will be able to access a breakfast club, in an expansion of the provision.

 Peak season ferry fares for residents of Orkney and Shetland will be removed. And for Orkney Island Council’s plans to replace the ageing inter island ferry fleet, a share in  a £7.6bn capital investment programme for Scotland. £1.2 billion of that pot has been set aside for renewing Scotland’s rail fleet and ferry vessels.

An increase in funding for the Scottish Fire and Rescue Service has been welcomed by the SFRS, however, Chief Officer Stuart Stevens said:

“While we welcome additional investment for our Service, our capital backlog and increasing running costs remain a significant challenge for our organisation.

“We will now take time to fully analyse and consider the details and begin planning for the next financial year. However, we will continue to deliver a reliable, effective service as we work to keep the people of Scotland safe.”

£436 million has been allocated to the Scottish Fire and Rescue Service for 2026-27.

In Third Force News a publication for the voluntary sector, Graham Martin, stated:

“There was a real feeling among campaigning groups that the government has been too timid.”

 Anna Fowlie, Scottish Council for Voluntary Organisations (SCVO) Chief Executive, said:     

“Too often and for too long, voluntary organisations that provide vital services to people and communities across Scotland are treated as the poor relation to mainstream public services. They have had to contend with budget cuts, short-term funding cycles, late payments, incoherent decision-making, poor communication, inadequate grant management, and more. “

The increase in the employers’ contribution to National Insurance by the UK Labour Government has hit businesses and voluntary organisations hard. The Office for Budget Responsibility (OBR) forecasted that for 2025 -26 National Insurance contributions (NICs) will raise £200.6 billion for the UK Treasury. “That represents 16.3 per cent of all receipts and is equivalent to around £7000 per household and 6.7 per cent of national income.”

Anna Fowlie has welcomed the Scottish Government’s Spending Review in actions to improve funding for the voluntary sector. She continued:

“We know the benefits of multi-year funding: better staffing, stability, and future planning for the services people and communities rely on. The Government’s own research confirms this.  

“Multi-year funding alone, however, will not provide the sustainable funding environment the voluntary sector so desperately needs, funding that is flexible, sustainable, and accessible.  

“We need to see real progress and recognition of SCVO’s Fair Funding asks beyond multi-year funding. Wider reforms are, unfortunately, now unlikely to be seen before  the next parliamentary term.

“In the meantime it is essential that in the weeks following the Scottish Budget the Scottish Government support local authorities and voluntary organisations by meeting their commitments to timely notifications and payments. “

Political parties have also reacted to the draft Scottish Budget with Labour describing it as ‘more of the same’, Labour’s  Finance spokesperson Michael Marra said: 

“This budget does not meet the aspirations of the people of Scotland or recognise their need for real change”.

The Scottish Greens have said that their proposals which were accepted by the Scottish Government  will “raise tens of millions of pounds for services including an expansion of free breakfast clubs for primary school pupils.” They proposed:

• a new tax on the 12,000 private jet flights taken in Scotland every year
• a ‘Mansion Tax’ on homes worth over £1 million
• an end to tax breaks for shooting estates. 

People in Scotland have a range of benefits which are not available anywhere else in rUK.

People in Scotland have access to free NHS prescriptions; free eye examinations; free school meals for all pupils in P1 to P5; there are no University tuition fees; free bus travel for under-22s and over-60s; people aged 16-21 who live in Orkney are eligible for concessionary ferry vouchers for travel to the Scottish mainland; also in Orkney there is free interisland ferry transport to young people in the islands up to the age of 22.

The Young Person’s Free Ferry Voucher Scheme provides four single (or two return) free ferry trips each year to eligible island residents in Orkney, Shetland, the Outer Hebrides, islands in North Ayrshire, Argyll and Bute and Highland Council areas. The Free Ferry Voucher Scheme has been available to islanders with a National Entitlement Card (NEC) (Saltire Card or bus pass) for some years .

Shona Robison, Cabinet Secretary for Finance and Local Government in the Scottish Government said:

“It will fund landmark policies to continue efforts to eradicate child poverty – investing in a brighter future for Scotland and the children growing up here.

“Almost £68 billion is being invested in 2026-27 and almost £200 billion through the Scottish Spending Review and Infrastructure Investment Pipeline, demonstrating the scale of our ambition for our nation.”

Fiona Grahame