The Scottish Government’s 2025 Spending Review has laid out a clear vision for shaping the nation’s future, with a strong emphasis on tackling child poverty, strengthening public services, promoting green growth, and fostering a more equitable society. With a comprehensive financial strategy designed to guide spending over the next several years, the government is aiming not only to meet immediate challenges but also to build long-term economic and social resilience.
Central to the review is the goal of eradicating child poverty. A key move includes raising the basic and intermediate income tax thresholds by 3.5%, which effectively increases the earnings limit for Carer Support Payment and Carer’s Allowance to £196 per week. This means carers can earn more without risking their benefits, supporting some of the most vulnerable in society. The government is also investing £768 million into the Affordable Housing Supply Programme, which is expected to deliver over 8,000 new homes. These include social housing, mid-market rentals, and options for low-cost homeownership, helping to ease the housing crisis and improve living standards for low-income families.
Healthcare is another major focus, with the government pledging a record £21 billion investment into health and social care. This includes a £2 billion boost to frontline NHS services to reduce waiting times and expand primary care. Initiatives such as the Hospital at Home programme and new efforts to reduce delayed discharges aim to improve service efficiency and patient outcomes. Education will also benefit, with a 3% real-terms spending increase to maintain teacher numbers and improve school facilities. Funding for free university tuition will be protected, and £3 million has been allocated for pilot breakfast clubs in primary schools to ensure children start the day with a nutritious meal.
Climate action features prominently, with a £4.9 billion investment to address the climate and nature emergencies. This includes £150 million to accelerate offshore wind development and £190 million to expand sustainable transport infrastructure, such as electric vehicle charging and improved bus networks. These investments are expected to create jobs and support Scotland’s goal of reaching net-zero emissions.
To deliver these ambitious plans, the government expects public sector bodies to achieve at least 3% annual efficiency savings. This will involve shared services, smarter procurement, and optimizing public assets. Overall, the 2025 Spending Review reflects Scotland’s commitment to inclusive growth, sustainability, and long-term fiscal responsibility, setting a bold direction for the years ahead.
