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The Scottish Budget: Key Impacts for Young People – by Jamail Umar MSYP

Jamail Umar, Member of the Scottish Youth Parliament for Dundee East, attending the latest Cabinet Takeover in November 2025
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On 13 January, the Scottish Government set out the Scottish Budget. The Cabinet Secretary for Finance and Local Government, Shona Robison MSP, outlined the Scottish Government’s devolved spending commitments across areas such as health, education, justice and transport.

Below are some of the most important parts of the Budget for young people in Scotland.

The Scottish Government reconfirmed its commitment to protecting key universal services, including free tuition fees, free prescriptions, free eye tests, free bus travel for under-22s, free school meals for P1–P5 pupils, and the continued removal of peak rail fares in Scotland. These policies demonstrate ongoing support for young people’s financial security and well-being. Maintaining free bus travel for under-22s and free school meals for P1-P5 pupils aligns strongly with our Dear Scotland manifesto.

Education

  • 10% increase in college funding across Scotland is a major win for young people. It will create more opportunities, strengthen technical education, and help students gain the skills employers require, reinforcing the vital role of colleges.
  • The Scottish Funding Council, supported by the Scottish Futures Trust, will work with colleges to improve infrastructure. This could result in state-of-the-art facilities and modern equipment for learners.
  • Free breakfast clubs will be introduced in every primary and special school, ensuring no child or young person starts the day hungry and everyone has the best start to learning. This partially aligns with our Dear Scotland manifesto.
  • Increased support for children and young people with additional support needs will help narrow the attainment gap and ensure every learner can reach their full potential. This aligns with our manifesto.
  • £20 million in additional funding has been allocated to the University of Dundee following its recent funding crisis.
  • Funding will support wraparound activities in the afternoon and early evening, with trial programmes running between 3 pm and 6 pm.
  • Summer sport activities, including a universal learn to swim offer for every primary school child.
  • A commitment to support over 31,000 apprenticeships this year will help young people access well-paid jobs and tackle generational poverty.

Housing

  • £926 million will be invested in the Affordable Housing Supply Programme in 2026–27. A consultation will also be launched for a 2027–2037 programme, with plans for £4.1 billion of public investment to deliver 36,000 additional affordable homes, at least 70% of which will be for social rent. This is a major win for young people as it makes housing more affordable and, aligns with our Dear Scotland manifesto.
  • Awaab’s Law will come into force across the social and private rented sectors, requiring landlords to investigate and fix hazards such as damp and mould within strict deadlines. This will protect young people from long-term exposure to unsafe living conditions.
  • Land and Buildings Transaction Tax rates will be maintained, including first-time buyer relief. The first £175,000 of a property purchase will remain tax-free, making it easier for young people to buy their first home.

Economy and Enterprise

  • Increasing the basic and intermediate income tax thresholds by 7.4% effectively cuts taxes for lower earners, allowing young people to keep more of their income.
  • A new £2.5 million Young Entrepreneurs package will support young people to start businesses, create jobs and boost local economies.
  • Over £215 million will be invested in city and regional growth deals, regional economic partnerships and community wealth building, helping young people access opportunities across Scotland.
  • £47 million will support the regeneration of communities and town centres, preventing high streets from becoming ghost towns and encouraging young people to shop and socialise locally through Scotland Loves Local initiatives.

Transport

  • £1.8 million will remove mid and peak season fares for islanders using Northern Isles Ferry Services, saving young people money in island communities.
  • £473 million will be invested in the concessionary travel scheme, maintaining free bus travel for under-22s and the removal of peak rail fares.
  • £2 bus fare cap pilot will be introduced in the Highlands and Islands, reducing travel costs for young people.

Environment and Energy

  • The Agri-Environment Climate Scheme will continue, aligning with our manifesto commitments on climate change.
  • £1.3 million will be invested in skills for regenerative and sustainable farming and food production, supporting climate action while developing skills for young people.
  • Continued funding for Lantra Scotland will support training and skills in Scotland’s aquaculture and environmental sectors.
  • Local authorities and health boards will work together to deliver Good Food Nation Plans, encouraging healthier eating habits among young people.
  • Continued support for the Carbon Neutral Islands Project, aligning with our Dear Scotland manifesto on climate change.
  • £9.3 million for community-led local development and £6 million for Community Climate Action Hubs, giving communities greater control over funding.
  • £12 million to support vulnerable communities in the Global South, particularly women and young people.
  • £28 million to restore over 10,000 hectares of peatland and £37 million to create more than 12,000 hectares of woodland, supporting climate action. Aligning with our Dear Scotland manifesto on climate change.

Justice and Home Affairs

  • £59 million in additional funding for frontline policing, improving crime prevention and investigation.
  • £25.9 million for victim and witness support services, helping people access justice.
  • Continued funding for Police Scotland’s Retail Crime Taskforce, including £3 million for prevention and enforcement. This is particularly important for young people working in retail, helping them feel safer at work.

Health and Social Care

  • £22.5 billion allocated to health and social care in 2026–27, described as record funding. This aligns strongly with our manifesto commitment to an NHS that remains publicly owned and free at the point of need.
  • £17.6 billion for NHS Boards, increasing investment in frontline services, including mental health support for young people.
  • £2.4 billion allocated to primary care, including £98 million additional funding as part of the GP contract.
  • £36 million to establish new high-street walk-in GP services, making access easier for young people without needing to phone early in the morning or miss education or work.
  • £7.5 million to improve neurodevelopmental assessments and care, allowing faster diagnosis and earlier support.
  • £30 million invested in the MyCare digital app, giving young people greater access to and control over their healthcare records.

Welfare and Social Justice

  • £61.5 million committed to the Tackling Child Poverty Fund, alongside the third Tackling Child Poverty Delivery Plan.
  • A new £50 million annual Whole Family Support package to prevent family breakdown and reduce the number of children entering care.
  • £20 million for third-sector organisations delivering community-based employment support.
  • Continued funding for free debt, income maximisation and welfare advice services.
  • A commitment to introduce an additional Scottish Child Payment for children under one, increasing support to £40 per week from 2027–28. This is great for Young Scots who have a child under 1 years old, which helps with the financial burden on having a young baby. 
  • Continued funding to tackle violence against women and girls and address inequalities linked to protected characteristics.

Local Government

  • Local government funding will increase by 2% in real terms, enabling councils to invest in services that benefit young people.
  • Over £680 million in capital funding, including £20 million to respond to the climate emergency and over £15 million for inter-island connectivity, aligning with our Dear Scotland manifesto.

Overall, this Budget includes many positive measures for young people, with the Scottish Government investing in initiatives that will benefit young people across Scotland.

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