Current status: Answered by Shona Robison on 19 September 2025
To ask the Scottish Government what its response is to the Scottish Retail Consortium’s suggestion in its Scottish Budget 2026-27 recommendations paper that spending restraint rather than tax rises should form the bulk of any measures to plug the projected gap in devolved government finances.
Listening to stakeholders is a priority for this government. That is why the Cabinet Secretary for Finance and Local Government met with the Scottish Retail Consortium earlier this week on 16 September to discuss the upcoming Budget, amongst other matters. The Scottish Government will be setting out the timetable for the draft budget for 2026-27 in the near future. That budget will set out our policies on taxation, reliefs, and public spending for 2026-27.
The Scottish Government’s Tax Strategy, published alongside the Budget last year, has already set out our intention not to increase the number of bands, or their rates, of Scottish Income Tax for the remainder of this parliament. We will also continue to deliver on our commitment to protect lower income households, ensuring more than half of taxpayers pay less than they would elsewhere in the UK.
The Scottish Government has already set out its plans to manage the projected gap between funding and spending over the next five years in its Medium Term Financial Strategy and Fiscal Sustainability Delivery Plan, with action focused across public spending, tax and economic growth. Under these plans, the Scottish Government will focus efforts on increasing value for public money and improving efficiencies and productivity across the public sector, underpinned by reform. This includes an action to reduce the public sector workforce by an average of 0.5% every year until 2030 while protecting frontline services. The Scottish Government’s Public Service Reform Strategy, published in June 2025, fully supports this setting out the detail on our vision and priorities for reform.