Stories

Thu, 26 Feb 2026

Thu, 26 Feb 2026 Pressure to make budgets add up as Holyrood election looms

Parties hoping to form at least part of a government will want to show how they will pay for their vote-winning promises
With only 90 days left until the Scottish Parliament election, pressure is mounting on parties to finalize their manifestos and reveal how they plan to pay for their promises. Historically, manifesto commitments have often been vague or unrealistic, but this time around there are growing calls from public finance watchdogs and experts for greater transparency and honesty. A new report by the Accounts Commission has highlighted a significant funding gap in health and social care services, with a £450m shortfall between demand and available funding. The commission is urging integration joint boards to make urgent decisions about where to cut or redesign services, warning that they may become financially unsustainable within 12-24 months. Meanwhile, the Scottish Fiscal Commission has warned of the need for "realistic, open and transparent" tax and spending choices, given the pressures on public finances. The commission's chair, Prof Graeme Roy, has noted that things could be even worse if Westminster's welfare reforms had been implemented. The commission has also highlighted the limitations of increasing income tax revenue, as the Scottish economy and tax base are under-performing. It forecasts that living standards will rise at less than a third of the average rate since devolution, limiting growth in income tax revenue. Economists at the Fraser of Allander Institute have warned of a "looming crisis" in public sector pay, with rapid and sometimes painful revised budgets possible if settlements break through the ceiling imposed by finance secretaries. The Institute of Chartered Accountants in Scotland (Icas) has also expressed concern about the health of the Scottish economy, with four in five of its members lacking confidence in the economy's prospects. Icas is calling for a long-term economic and tax strategy to support key growth sectors and invest in skills. Finally, the Joseph Rowntree Foundation is urging manifesto writers to go bold on reforming the "broken" council tax system, which it describes as "unfair by design", "outdated", and "regressive".