Scotland’s Public Finances Continue to Face Pressure

CDI Scotland Associate

17 August 2026

Scotland’s Public Finances Continue to Face Pressure

The latest Government Expenditure and Revenue Scotland (GERS) statistics provide an overview of Scotland’s public finances, including the revenue raised and the cost of providing public services. The figures show that Scotland’s public finances improved slightly over the past year, but a significant gap remains between public spending and revenue.

Government revenue increased during 2025-26, supported by growth in income tax, National Insurance contributions and other sources of taxation. At the same time, public spending also continued to rise, reflecting the cost of delivering essential services and supporting communities across Scotland.

The figures highlight the wider economic pressures facing Scotland, including increased demand for public services and the need to balance investment with available resources. Spending on areas such as health and social protection remains a significant part of overall public expenditure.

For the labour market and careers sector, the wider fiscal environment is important. Public finances influence investment in education, skills, employability and public services, while changes in taxation and government spending can also affect employers, workers and household finances.

Overall, the latest GERS figures highlight the continuing importance of sustainable public finances and effective investment in Scotland’s people, services and economy.

Read more about Scottish Government finances.

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