The Scottish Parliament’s budget will see an average annual increase of £2.9 billion, according to Treasury officials, following Chancellor Rachel Reeves’ spending review.

Reeves announced a rise in the block grant from Westminster to £52 billion by 2029, described as the “largest real-terms settlement since devolution”.

The UK’s first multi-year spending review since 2021 also confirmed investments in defense, carbon capture, and computing.

However, Scotland’s Finance Secretary, Shona Robison, claimed a shortfall exceeding £1 billion, citing a smaller block grant increase compared to the overall rise across UK government departments.

The review confirmed funding for several Scottish projects, including development funding for the Acorn Project carbon capture scheme in Aberdeenshire (amount unspecified).

A £750 million allocation for Edinburgh University’s supercomputer project and £250 million for Faslane nuclear submarine base upgrades were also announced.

Increased NHS and housing funding in the rest of the UK will impact Scotland’s annual Westminster funding via the Barnett Formula.

The Scotland Office stated an additional £9.1 billion for the Scottish government over the review period. Nevertheless, Ms. Robison argued for a larger increase in day-to-day funding.

Robison stated: “This settlement is disappointing, with real-terms growth of 0.8% annually for our block grant, lower than the average for UK departments. Aligned growth would have provided £1.1 billion more over three years. Scotland has been short-changed.”

Reeves outlined a rise in UK defense spending to 2.6% by April 2027, aiming to make Britain a “defence industrial superpower”.

This includes an initial £250 million over three years for Faslane, supporting jobs and growth in western Scotland. Further details are pending, but Defence Secretary John Healey emphasized sustained investment in HMNB Clyde.

A £4.5 billion investment in munitions across the UK, including Glasgow, was also announced, along with development funding for the Aberdeenshire Acorn Project.

The Acorn Project, based in St Fergus, will capture and store greenhouse gas emissions under the North Sea. While the exact funding remains undisclosed, a final investment decision is planned later this parliament.

The spending review also allocates up to £750 million for the UK’s most powerful supercomputer at Edinburgh University. This funding, previously dropped, will significantly enhance UK research capabilities.

Prof Sir Peter Mathieson, principal of Edinburgh University, welcomed the investment, highlighting its positive impact on the UK’s global standing and research opportunities. The university has already invested £31 million in infrastructure.

The £52 billion Holyrood budget figure cited by the Chancellor represents a cumulative total after years of increases, not solely this review’s impact. It also doesn’t reflect the reduction in the block grant due to devolved taxes.

Robison’s criticism centers on the £1 billion gap between average day-to-day spending increases across Whitehall and the block grant increase for Holyrood.

This reflects increased spending in reserved areas, particularly defense. More funding will bypass Holyrood for direct Whitehall spending in Scotland.

Examples include green freeports tax breaks, the Edinburgh supercomputer, and the Faslane upgrade.

Key figures for understanding Holyrood’s budget include a 0.8% annual increase in the block grant, compared to 1.5% average day-to-day spending and 1.8% capital spending increases across Whitehall.

The review anticipates greater government spending efficiency, particularly within HM Revenue and Customs and the Department of Transport, through technology, improved management, and optimized resource use.

Robison’s medium-term financial strategy, postponed until after the Spending Review, will outline the Scottish Government’s response. A full Scottish government response is expected months before the next Holyrood election.

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The Scottish Parliament’s budget will see an average annual increase of £2.9 billion, according to Treasury officials, following Chancellor Rachel Reeves’ spending review.

Reeves announced a rise in the Scottish block grant to £52 billion by 2029, described as the “largest real-terms settlement since devolution”.

The UK’s first multi-year spending review since 2021 also detailed investments in defense, carbon capture, and computing.

However, Scotland’s Finance Secretary, Shona Robison, claimed a shortfall exceeding £1 billion, asserting the block grant increase lags behind the overall rise in UK government department budgets.

The review confirmed funding for several Scottish projects, including development funding for the Acorn Project carbon capture scheme in Aberdeenshire (exact amount unspecified).

A £750 million allocation supports Edinburgh University’s supercomputer project, while £250 million is earmarked for Faslane nuclear submarine base upgrades.

Increased NHS and housing funding in the rest of the UK will impact Scotland’s annual Westminster funding via the Barnett Formula.

The Scotland Office stated an additional £9.1 billion for Scotland across the review period. However, Ms. Robison argued for a larger increase in day-to-day funding.

She stated: “Today’s settlement is disappointing, showing real-terms growth of 0.8% annually for our block grant—lower than the average for UK departments. Had our funding grown in line with the UK government’s overall spending, we would have £1.1 billion more over three years. Scotland has been short-changed.”

Reeves announced UK defense spending will reach 2.6% by April 2027, aiming to establish Britain as a “defense industrial superpower”.

This includes an initial £250 million over three years for Faslane, supporting “jobs, skills, and growth”. While details remain unreleased, Defence Secretary John Healey confirmed “long-term, sustained investment” for HMNB Clyde.

A £4.5 billion investment in munitions across the UK, including Glasgow, was also announced. Development funding for the Aberdeenshire Acorn Project, a carbon capture and storage scheme, was confirmed.

This follows industry calls for investment in the long-delayed project, previously on a reserve funding list. The exact funding amount remains undisclosed, with a final investment decision pending.

The review also includes plans for the UK’s most powerful supercomputer at Edinburgh University, with a pledged £750 million investment. This follows the project’s reinstatement after being dropped upon Labour’s assumption of power.

The new supercomputer will significantly surpass the capacity of Archer2. University of Edinburgh Principal Sir Peter Mathieson welcomed the “profoundly positive impact” on the UK’s global standing.

The university has already invested £31 million in the necessary infrastructure. The Chancellor’s mention of a £52 billion Holyrood budget reflects a cumulative total over many years and doesn’t fully reflect the Spending Review’s impact.

Ms. Robison highlights a £1 billion gap between the average increase in day-to-day Whitehall spending and the block grant increase for Holyrood. This discrepancy may be attributed to increased spending in reserved areas, notably defense.

More funding will bypass Holyrood for direct Whitehall spending in Scotland, including tax breaks for green freeports and the Edinburgh supercomputer and Faslane upgrades.

Key figures for understanding Holyrood’s budgetary situation include a 0.8% annual increase in the block grant, compared to 1.5% average day-to-day spending increase and 1.8% capital increase across Whitehall.

The review anticipates increased efficiency in government spending, particularly affecting HMRC and the Department of Transport. Pressure exists on both Whitehall and the Scottish Government to improve efficiency.

The Scottish Government’s medium-term financial strategy, postponed pending the Spending Review, will be released later this month, with a full Scottish government response expected months before the next Holyrood election.

Separate bills to allow assisted dying are under consideration in Westminster and Scotland.

The Treasury confirms funding for Devon and Somerset rail projects in the spending review.

Mark Drakeford accuses Rhun ap Iorwerth of poor listening amidst heckling.

English council tax bills are projected to increase annually to 2029.

Council tax is expected to rise by 5% annually to fund local services, according to spending review documents.