Scotland records record revenue and spending amid £25.3 billion deficit

Scotland recorded record highs in both revenue and public spending for the 2025-26 period, resulting in a £25.3 billion deficit. While total revenue rose by £6.3 billion (6.9%) to £98.3 billion, public expenditure increased by £5.7 billion (4.8%) to reach £123.6 billion.

The revenue growth was driven largely by a £2.4 billion increase from UK Government national insurance contributions and a £1.5 billion boost from income tax receipts following a freeze on higher tax bands. However, revenue from North Sea taxes declined by £0.4 billion due to falling oil and gas prices, with the Scottish share falling to less than £3.2 billion.

Public spending per person in Scotland was £22,281, significantly higher than the UK average of £19,561. The primary drivers for increased expenditure were social protection and health, which saw increases of £2.1 billion and £1.5 billion, respectively. Despite the growth in revenue, Scotland's deficit remains at 10.9% of its GDP, compared to a UK-wide deficit of 4.2% of GDP.