THE Scottish Government has announced over £5 billion to tackle the climate emergency, £4.3 billion in transport funding, and a record investment in affordable homes in its 2026-27 budget.
Finance minister Shona Robison revealed a total of £926 million in 2026-27 will be invested in affordable housing to continue progress towards the target of delivering 110,000 homes by 2032. Over the next four years, the Scottish Government said it will invest up to £4.9 billion – including a record £4.1 billion of public sector funding – to support delivery of 36,000 affordable homes.
The budget also supports a commitment to Scotland’s climate change targets and tackling fuel poverty. As well as ensuring new homes are fit for the future, with zero emissions heating systems, the government said it will adapt and retrofit existing homes, including targeting support to those in, or at risk of fuel poverty, to reduce their energy bills.
The investment in transport includes railways, the renewal of the country’s ferry fleet, and £200 million for the ongoing dualling of the A9, as well as the removal of peak season fares for residents of Orkney and Shetland on Northern Isles ferries.
Universities and colleges will see a combined increase of £70 million in resource and capital funding, the equivalent to a 10% uplift, while targeted support will be delivered to retrain workers in the oil and gas sector and ongoing commitment to Scotland’s apprenticeships.
Over £5 billion will be committed to tackling the climate emergency, reduce carbon emissions and increase resilience as well as backing regenerative and sustainable skills in food and farming.
The investment will be underpinned by £30 billion capital spending over the spending review period to March 2030 with specific plans worth £11.1 billion outlined in the infrastructure delivery pipeline.
Further projects will move into the pipeline as business cases are approved. Plans include:
- £4.1 billion public investment to support delivery of 36,000 more affordable homes – with at least 70% for social rent
- Targeted investment across the NHS estate, improving resilience, and enabling modernisation of both property and services
- £1.2 billion in renewing rail fleet and ferry vessels and associated enabling works
- Investment in work to dual the A9 between Perth and Inverness
- More than £700 million in HMP Glasgow and HMP Highland to increase prison capacity and transform rehabilitation
- Investment in natural infrastructure, with close to £300 million in peatland restoration and woodland creation
Scottish Government finance secretary Shona Robison said, “Infrastructure is essential to Scotland’s health, economy and environment. It underpins the crucial public services that people rely on every day.
“To ensure Scotland’s infrastructure remains responsive to our evolving needs we must make smart, strategic choices: renewing and adapting our asset base, investing in prevention, and leveraging private investment where appropriate.
“The first minister has been clear about this government’s priorities – with economic growth, tackling child poverty, meeting the challenge of climate change, and investment in and reform of our public services at the heart of our drive to deliver the infrastructure Scotland needs and deserves.”
