Scottish Budget 2026–27

22 Jan 2026 11:55 AM

The Scottish Budget 2026–27 sets out the government’s spending and investment priorities, outlining how funding will be allocated across key policy areas. It provides context on fiscal decisions and their implications for public services, the economy and future delivery.

On 13 January, the Cabinet Secretary for Finance and Local Government, Shona Robison MSP, presented the Scottish Government’s Budget for 2026-27 to the Scottish Parliament.

With less than four months until the Scottish Parliament election, this was a significant moment for the current Scottish Government to set out its tax and spending plans for the year ahead, should they be re-elected. 

Some of the headline announcements could be interpreted as being made with the Holyrood elections in mind, e.g. increases to the basic and intermediate income tax rate thresholds; an increase to the Scottish Child Payment; and the introduction of a mansion tax. Bearing in mind voters’ priorities and ongoing challenges, the portfolios receiving the most amount of funding are Health and Social Care (pg. 34) and Finance and Local Government (pg.40).

But what’s in it for tech?

There are a couple of points worth highlighting for the tech sector and tech companies based in Scotland.

The first is in terms of health and social care. The Budget states that the Scottish Government is investing nearly £126 million in digital, data and AI technologies (pg. 13).

Commenting on the investment, Heather Thomson, CEO of The Data Lab yesterday said:

“Data and AI technologies have huge potential to increase productivity, reduce inefficiencies, improve our society and change lives in Scotland, but ethical and responsible development and adoption are critical. It’s exciting to see the £126m investment in modernising our NHS through digital infrastructure, introducing digital, data and AI technologies, ensuring safe foundations are in place to deliver services more efficiently and enhance patient outcomes.”

The second point relates to support for SMEs. The Scottish Government has allocated £45 million towards driving innovation, enterprise and entrepreneurship, with further investment being allocated to the Enterprise Agencies and the Scottish National Investment Bank. They also announced a new Entrepreneurs Package for 2026-27.  

Further support for business can be seen through the Government’s decision to reduce the Basic, Intermediate, and Higher Property Rates in 2026-27, and continue the Small Bonus Scheme. However, these measures are not tech specific and, overall, the Budget appeared light on tech and the tech sector.

At the end of last year, techUK published its annual Local Digital Index which laid out a number of recommendations to support the growth of the tech sector across the UK – this included a recommendation to offer Business Rates holidays and relief around specific new digital infrastructure. In the next few weeks, techUK will be publishing its devolved government manifesto, which will recommend further specific actions that the Scottish Government can take over the next year.

Matt Robinson, Head of Nations and Regions, techUK, yesterday said:

“techUK welcomes the support outlined for SMEs and the financial investment in digital, data and AI, as well as universities and colleges. The future and growth of the tech sector depends on people having the right digital skills, and this investment will go a long way in ensuring that happens.

“However, there is a notable lack of tech specific support in the Budget. Scotland’s tech sector is a key component of efforts to drive and support economic growth and to improve public services. It needs the support of government, at all levels. Over the coming months, we hope to see a far greater emphasis put on supporting tech companies to scale, adopt digital technology and expand digital skills development.”