Scottish Budget Introduces Modest Tax Cuts and Record NHS Spending

The SNP unveils a budget aimed at addressing poverty, boosting healthcare, and preparing for the 2026 elections, but faces criticism over limited tax relief and fiscal risks.

The Scottish Government announced a modest income tax cut of £1.21 per month for most workers, while freezing thresholds for higher earners, which critics argue will lead to fiscal drag.
The budget includes a record £2 billion increase in NHS funding, bringing total health and social care spending to £21 billion in 2025-26, with pledges to reduce waiting times and improve GP access.
The SNP committed to ending the two-child benefit cap in Scotland by early 2026, aiming to lift over 15,000 children out of poverty, though funding details remain unclear.
Business support measures include a 40% rates relief for small hospitality firms, but broader concerns persist over Scotland's tax competitiveness and rising employer costs.
The minority SNP government must secure support from opposition parties like the Scottish Greens or Liberal Democrats to pass the budget, with negotiations ongoing.