In a news story published on 28 October 2026, HM Treasury and the Scotland Office set out measures for Scotland announced in Budget 2026. The government said the Scottish Government would receive an additional £600 million for public services, on top of an additional £1.7 billion from Budget 2025 and the Spring Forecast 2026.
On energy, the Budget removed the 4% tariff on kerosene, which the government said would support the 142,000 Scottish households relying on heating oil. It also extended 0% VAT on household electricity bills for three months, to 30 June 2027, and announced a Debt Relief Scheme to write off crisis-era debt for eligible households. The 5p cut to fuel duty was extended for six months until 30 June 2027, while the 3.7p cut to red diesel duty continues.
Other measures included axing tariffs on over 100 food products, which the government said would save households up to £21 annually alongside earlier suspensions. It cited rises in the National Living Wage to £13.21 per hour and National Minimum Wage rates for younger workers and eligible apprentices. Growth measures included £18 million for a UK Advanced Chip Design Academy led by the University of Edinburgh, £6 million to expand Glasgow's Scottish Event Campus subject to a business case, and £20 million for two Defence Technical Excellence Colleges in Scotland. The government also said 93,000 low-income pensioners in Scotland would pay less tax or none by the end of this Parliament.


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