Bad news for billionaires, Scotland will soon introduce both a private-jet levy and “mansion tax”, making life a little harder for those swapping Silicon Valley for a luxurious Highland hideaway.

Opening the Scottish Budget with the plans to target mansions and chartered aircraft was a good way for the SNP’s finance secretary, Shona Robinson, to grab the attention of MSPs, but with £68 billion in taxpayer cash to invest, there’s a lot to interrogate.

Let’s dive in. 

How many billions for AI?

Strangely, technology didn’t get much of a mention, despite the SNP over the last year drilling the importance of AI and emerging tech to the Scottish economy.

While more Scottish businesses than ever now use technology like AI in their daily operations, the government’s draft budget provides little more than a throwaway reference to “almost £126 million” for investment in digital, data and AI technologies.

Compared to other spending priorities, that isn’t breaking the bank, with the finance secretary’s ambiguity not going unnoticed among Scotland’s tech leaders.

“Although we were pleased to see an increased focus on skills and education, it was disappointing to see barely any mention of targeted support for Scotland’s tech sector in the Finance Secretary’s speech today,” said Karen Meechan, chief executive of ScotlandIS.

“The sector already contributes £6.87 billion to Scotland’s GVA and has an enormous amount to offer Scotland’s future prosperity. But we need focused support to realise this potential.”

It’s possible that, facing a knife-edge election and a gaping £5 billion funding gap, the SNP is sacrificing long-term tech funding for schemes that will make a difference to voters’ everyday lives (hello, free prescriptions).

But without a clear commitment to fresh innovation and tech investment, the Scottish Government risks falling behind Westminster, especially as Labour made support for tech firms and AI development a make-or-break issue in its own budget package.

A Sweetheart Deal for SMEs

To make good on its promise to back high-growth firms, the government will channel over £45 million into innovation, enterprise, and entrepreneurship, on top of the £326 million already earmarked for Enterprise Agencies, plus another £200 million for the Scottish National Investment Bank.   

While that funding might not do much for established firms, it proves that startups and scale-ups are still a linchpin of the SNP’s economic plans, with Robinson committing to slash property rates for SMEs and provide tax relief worth £184 million over the next three years. 

More proof, 100,000 small firms will continue to benefit from the Small Business Bonus Scheme and the government will keep its Business Growth Accelerator reliefs in place, decisions made in response to “concerns from the business community”, according to Robinson, but these promises are not enough to ease industry concerns.

“This budget was an opportunity for the Scottish government to prioritise growth by boosting capital investment and easing the burden on taxpayers and businesses, but it largely highlighted the continued lack of focus on accelerating growth in Scotland,” said Sandy Begbie, chief executive of Scottish Financial Enterprise. 

“The Scottish government should collaborate closely with the private sector on different investment models so we can accelerate the investment this country badly requires.” 

The Cost of Carbon

Even if the draft Budget left businesses wanting more, the government at least signalled it was ready to double down on the climate emergency, with over £5 billion laid out for schemes to help reduce carbon emissions and hasten the country’s path to net zero. 

Among the top-line investments earmarked by the SNP are £93 million in capital funding for the offshore wind sector, more than £30 million for the Just Transition Fund and a sustainable industrial cluster at Grangemouth, and £33 million for myriad clean energy transition projects.

Also on the books is the introduction of 100% relief for eligible EV-charging points for the next decade, and £1 million to support the Scottish Climate Intelligence Service, which aims to help local authorities baseline emissions and plan for climate impacts.

And, of course, there’s that private jet tax, which Oxfam Scotland’s head told the BBC sends a clear message that “the super-rich will no longer get a free pass to pollute Scottish skies.” 

Campus Cash

There was good news for Scotland’s higher education sector, too, with Robinson announcing a 10% increase in college funding, adding up to an extra £70 million this year, with the Scottish Funding Council set to work with colleges to develop a comprehensive infrastructure plan.

That cash might prove essential to pull Scotland’s colleges out of crisis, with recent reports showing that the 20% real terms cut in funding over the last five years has led to “unsustainable losses” that might leave eleven colleges running out of cash over 2026/27.

Grappling with its own £35 million blackhole, Dundee University was singled out, with news that the beleaguered institution will receive another £20 million, adding a hefty funding pledge on top of the £22 million rescue package already provided by the SFC.

Another £90 million will go towards employability services and skills development, with £8 million of funding specifically to help adult learners gain new skills, and ongoing support for apprenticeships, which Robinson said will help more than 31,000 Scots land well-paid jobs this year.  

Otherwise, it’s business as usual, with the SNP committing over £2.4 billion to the post-school system to carry on its policy of free university education “for as long as there is an SNP government.” 

Recommended reading

• ScotlandIS Outlines Opportunities and Risks For Tech in 2026
• Are Policy Delays Risking Scotland’s Business Competitiveness?
• Scotland’s Fintech Cluster Doubles in Five Years

Income Tax and NHS

Squeezing as much out of their devolved powers as possible, the SNP also plans to raise the thresholds for two income tax bands, essentially meaning that a larger slice of people’s basic earnings will fall under the 19% starter rate.

However, the move won’t help Scotland’s cutting-edge industries attract and retain the top-level talent it needs to compete, industry figures warned.

“The decision to increase the thresholds for the basic and intermediate rates of income tax will offer some relief to lower earners but does little to address the ongoing challenge facing Scotland’s tech employers: finding and keeping high-value talent, particularly at senior levels,” said Meechan. 

While income tax grabs headlines, Scotland’s NHS was maybe the biggest winner, with Robinson laying out a record £17.6 billion for frontline health services, £2.4 billion to support GPs and community services, as well as more than £2.3 billion to improve social care.

The SNP also plan to increase funding for local government by 2% in real terms (what Robinson called a “fair” deal for councils), and £200 million for the perennial thorn in the SNP’s side, dualling the A9, as part of a longer-term £30 billion national infrastructure strategy.    

Taking to her feet, Robinson was adamant that her Budget will deliver “what’s best for Scotland”, but there’s no guarantee it will pass, with the SNP needing opposition MSPs to either abstain or vote in support when it comes to the crunch.

The collapse of the Scottish Budget might be a stretch (Anas Sarwar has already signalled his bloc won’t rock the boat), but with May’s elections fast approaching, who knows what last-minute drama might visit Holyrood when the final vote comes up next month.