Labor budget sets the stage for 2026 Holyrood elections

The questions now are whether the Scottish government will know the details before setting the 2025-26 budget in December and whether the extra cash will “fully” offset the impact of higher national insurance costs.

The Scottish government has said it needs a further £500 million, but the population-based share spent on such compensation in England is unlikely to cover this amount because Scotland has more health and education workers per head.

These details are important, but the Scottish headline on the first Labor budget in 14 years suggests a huge increase in public money is available for SNP ministers to decide how to spend.

The Scottish Conservatives think this is all a political opportunity for them. Arguing, as the party’s new leader, Russell Findlay, did at First Minister’s Questions that business and workers need a different approach, including tax cuts, to thrive.

His political opponents will say things went badly when Tory prime minister Liz Truss tried, damaging the economy and forcing him out of office.

This budget already outlines the 2026 Holyrood election campaign.