‘Highly unlikely’ Scottish budget will be delivered in December
The Scottish Government may not deliver its budget for 2026-27 until the new year, finance secretary Shona Robison has warned.
The statement would normally be scheduled for December but, following the news the UK Budget will not be announced until late November, Robison said it was “highly unlikely” she would be able to bring forward hers before Christmas.
Chancellor Rachel Reeves announced on Wednesday she would deliver her budget on Wednesday 26 November. Her budget last year was nearly a month earlier.
The Scottish Government typically sets out its budget in December, with parliamentary scrutiny of the bill taking place in January and February.
As a minority government, the SNP must work with other parties to secure the necessary votes – meaning the time to negotiate a deal will also be curtailed.
Robison said: “This delay by the UK Government makes it incredibly difficult for the Scottish Government to undertake the detailed financial planning needed to bring forward our own budget in the usual timescale.
“Given the impact of this decision for Scotland, it is deeply disappointing that the Treasury failed to make the Scottish Government aware in advance. This is not the positive working relationship we were promised by the prime minister and chancellor.
“Unless the UK Government reconsiders this decision, it is highly unlikely that the Scottish Government will be able to bring forward our budget and spending review before Christmas. Given the short period available before parliament dissolves in March, it is incredibly unhelpful that the initial parliamentary scrutiny will likely be delayed into January.”
In a normal year, the Scottish Parliament must set taxes and pass a budget before the start of the new financial year in April. However, May’s elections add an additional time pressure as this session of the parliament will come to an end towards the end of March.
The Scottish Government will announce the date of its budget in due course, but a delay until January will likely push back the dates for scrutinising the legislation.
Reeves is under increasing pressure as she attempts to balance public finances while sticking to her self-imposed fiscal rules.
Economists have warned that she will need to make spending cuts and increase taxes, but Labour pledged it would not increase taxes on “working people” in the run-up to the election last year.
In a video posted on social media today, Reeves said: “We must bring inflation and borrowing costs down by keeping a tight grip on day-to-day spending through our non-negotiable fiscal rules.
“It’s only by doing this can we afford to do the things we want to do. If renewal is our mission and growth is our challenge, investment and reform are our tools – the tools to building an economy that works for you.”
SNP MP Pete Wishart challenged the prime minister over the lateness of the budget at PMQs on Wednesday. He also criticised the government for not informing Scottish ministers in advance.
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