ICAS brands Scottish Budget as ‘short-term fix’

ICAS brands Scottish Budget as 'short-term fix'

Bruce Cartwright CA – CEO of ICAS

Bruce Cartwright CA, CEO of ICAS, has responded to Holyrood’s approval of The Scottish Government’s 2025-26 Budget, describing it as a “short-term fix” lacking a long-term tax strategy and a clear reform roadmap for public services.

The budget includes £21.7 billion for health and social care, £15bn for local councils, and £6.9bn for social security, aimed at supporting approximately two million people.

Additionally the budget will invest:



  • £4.9bn in climate-positive investment
  • over £7bn for infrastructure
  • more than £2bn for colleges, universities and the wider skills system
  • an additional £25 million to support the Grangemouth Industrial Cluster, taking total investment to £87m.

Mr Cartwright commented: “Despite an additional £5.2 billion of funding from Westminster, the budget doesn’t provide the clear, long-term tax strategy that businesses need to help them plan with confidence, or the well-defined reform roadmap required to transform Scotland’s public sector services.

“While increases to the starter, basic and intermediate income tax band thresholds offer a small relief to taxpayers on lower incomes, this gain will be outweighed by significant council tax increases across Scotland. With the nationwide freeze ending in April, many local authorities are raising rates by as much as 10 per cent to offset past funding cuts, placing even more financial pressure on families and businesses who are already struggling.”

Mr Cartwright continued: “The record £21 billion allocated to the NHS and increased local authority funding remain welcome announcements. However, without a clear strategy for reform, investment alone won’t resolve the deep-rooted challenges facing Scotland’s public services. More funding is not the answer if failing systems remain unchanged.

“We will continue to call for a more strategic approach to taxation and public service reform that provides businesses and taxpayers with the stability, certainty and quality of services they need. We hope that the Scottish Government’s Medium Term Financial Strategy, expected in late May, will offer the strategic detail necessary to secure a positive economic future for Scotland.”

ICAS brands Scottish Budget as 'short-term fix'

Finance Secretary Shona Robison

Finance Secretary Shona Robison said: “This is a Budget by Scotland for Scotland. It includes record NHS investment, social security spending to put money in the pockets of low income families and action to effectively scrap the two-child benefit cap next year.

“We are delivering a universal winter heating payment for the elderly, providing record funding for local government and increasing investment in affordable housing.”

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