Scottish flag above Edinburgh

Government spending boosts public services and economic growth

The Scottish Government has confirmed that more than £52 billion in public spending last year funded vital services across Scotland, supporting healthcare, social security, fair pay, and economic resilience.

The 2024-25 Provisional Outturn outlines how actual spending aligned with available funding, demonstrating the government’s commitment to protecting frontline services and delivering for communities despite ongoing fiscal pressures.

  • £19.5 billion invested in health and social care, ensuring critical services continue to evolve and meet the needs of Scotland’s diverse population.
  • £5.9 billion allocated to social security, directly supporting over 1.4 million people, including £456 million for the Scottish Child Payment, which benefited 326,225 children under 16 as of 31 March 2025.
  • Support for fair and affordable pay deals for essential public service workers.
  • Scotland’s economy grew 1.2% in 2024, outperforming the UK average of 1.1%, and up from 0.5% growth in 2023.

Ivan McKee, Scottish Public Finance Minister, commented:

“The provisional outturn demonstrates once again this Government is prudently and competently managing Scotland’s finances while protecting our priorities and ensuring we can deliver effective public services.

“Managing the financial position for 2024-25 was a challenge once again. The continued impact of inflation, pressure on public sector pay, and wider geopolitical instability meant careful consideration had to be given to balancing the Scottish Budget.

“What’s more, under the UK Spending Review the Scottish Government’s day-to-day spending is set to grow by 0.8% over the next three years, considerably lower than the 1.2% average growth for UK Government departments. 

“The impact of these challenges on our financial planning will be set out in the Medium-Term Financial Strategy tomorrow in Parliament, but the growing future year pressures mean we must act prudently and responsibly to remain fiscally sustainable.”

Scottish spending QUOTE

The government has carried forward £557 million — just 1% of the total budget — into the 2025–26 financial year, ensuring no loss of spending power and maintaining flexibility to meet future needs.

The figures highlight the Scottish Government’s focus on inclusive growth, social support, and healthcare resilience, even in the face of global economic uncertainty.

 

Image credit: iStock

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