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21 Jan 2026

Scottish Government reveals details of £15bn set aside for councils in Budget

Scottish Government reveals details of £15bn set aside for councils in Budget

The Scottish Government has set out details of the £15 billion being given to councils as part of the Budget.

The funding, which includes an increase of about £1 billion on what was allocated last year, includes a one-off payment for environmental initiatives and more than £120 million for pay deals, the Scottish Government said.

First Minister John Swinney and Finance Secretary Shona Robison have said the funding bump should mean authorities will not have to hike council tax, but the decision not to freeze the levy for a second year has left that decision in the hands of councils.

“Our budget is laying the foundations for Scotland’s future success, with investment to help improve the public services that people rely on,” the Finance Secretary said.

“Local authorities provide some of the most important services to our communities – from schools to social care – which is why we’ve increased their funding by more than £1 billion compared with last year’s Budget.

“The settlement is the result of meaningful budget engagement with Cosla and councils.

“While council tax decisions are a matter for individual local authorities, with record funding of over £15 billion there is no reason for big increases in council tax next year.

“This is a Budget that will deliver increased funding for schools, social care and other vital council services. But this funding will only reach communities if the Budget passes, so I am asking Parliament to unite behind it.”

Cosla has been contacted for comment.

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