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Scottish government plans £700M 2027-28 budget cuts

8/25/2026

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Summary

Story summary

Scottish Fiscal Commission says the Scottish government will cut over £700 million from its 2027-28 budget.
The cut is intended to close the gap between forecast and actual income-tax revenues.
Commission noted Holyrood received an extra £831 million this year from a one-off education boost from England.
Prime Minister Andy Burnham said he will not rule out tax rises that could affect Scottish taxpayers.

History

Historical Context

Chancellor George Osborne’s 20 October 2010 Spending Review imposed £81 billion of cuts, the largest since World War II, forcing devolved administrations to tighten budgets. Decades later the Scottish Fiscal Commission projects a £700 million deficit for 2027-28, echoing the earlier revenue shortfall, while England’s £831 million education boost and Prime Minister Andy Burnham’s openness to tax rises heighten fiscal pressure.

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Story summary

Scottish Fiscal Commission says the Scottish government will cut over £700 million from its 2027-28 budget.
The cut is intended to close the gap between forecast and actual income-tax revenues.
Commission noted Holyrood received an extra £831 million this year from a one-off education boost from England.
Prime Minister Andy Burnham said he will not rule out tax rises that could affect Scottish taxpayers.

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