The Scottish Budget 2026–27 sets out the government’s spending and investment priorities, outlining how funding will be allocated across key policy areas. It provides context on fiscal decisions and their implications for public services, the economy and future delivery.
On 13 January, the Cabinet Secretary for Finance and Local Government, Shona Robison MSP, presented the Scottish Government’s Budget for 2026-27 to the Scottish Parliament.
With less than four months until the Scottish Parliament election, this was a significant moment for the current Scottish Government to set out its tax and spending plans for the year ahead, should they be re-elected.
Some of the headline announcements could be interpreted as being made with the Holyrood elections in mind, e.g. increases to the basic and intermediate income tax rate thresholds; an increase to the Scottish Child Payment; and the introduction of a mansion tax. Bearing in mind voters’ priorities and ongoing challenges, the portfolios receiving the most amount of funding are Health and Social Care (pg. 34) and Finance and Local Government (pg.40).
But what’s in it for tech?
There are a couple of points worth highlighting for the tech sector and tech companies based in Scotland.
The first is in terms of health and social care. The Budget states that the Scottish Government is investing nearly £126 million in digital, data and AI technologies (pg. 13).
Commenting on the investment, Heather Thomson, CEO of The Data Lab said:
“Data and AI technologies have huge potential to increase productivity, reduce inefficiencies, improve our society and change lives in Scotland, but ethical and responsible development and adoption are critical. It’s exciting to see the £126m investment in modernising our NHS through digital infrastructure, introducing digital, data and AI technologies, ensuring safe foundations are in place to deliver services more efficiently and enhance patient outcomes.”
The second point relates to support for SMEs.The Scottish Government has allocated £45 million towards driving innovation, enterprise and entrepreneurship, with further investment being allocated to the Enterprise Agencies and the Scottish National Investment Bank. They also announced a new Entrepreneurs Package for 2026-27.
Further support for business can be seen through the Government’s decision to reduce the Basic, Intermediate, and Higher Property Rates in 2026-27, and continue the Small Bonus Scheme. However, these measures are not tech specific and, overall, the Budget appeared light on tech and the tech sector.
At the end of last year, techUK published its annual Local Digital Index which laid out a number of recommendations to support the growth of the tech sector across the UK – this included a recommendation to offer Business Rates holidays and relief around specific new digital infrastructure. In the next few weeks, techUK will be publishing its devolved government manifesto, which will recommend further specific actions that the Scottish Government can take over the next year.
techUK welcomes the support outlined for SMEs and the financial investment in digital, data and AI, as well as universities and colleges. The future and growth of the tech sector depends on people having the right digital skills, and this investment will go a long way in ensuring that happens.
However, there is a notable lack of tech specific support in the Budget. Scotland’s tech sector is a key component of efforts to drive and support economic growth and to improve public services. It needs the support of government, at all levels. Over the coming months, we hope to see a far greater emphasis put on supporting tech companies to scale, adopt digital technology and expand digital skills development.
Matt Robinson
Head of Nations and Regions, techUK
Matt Robinson
Head of Nations and Regions, techUK
Matt Robinson
Head of Nations and Regions, techUK
Matt is techUK’s Head of Nations and Regions.
Matt is leading techUK’s work with members and stakeholders across the UK to increase the Local Digital Capital across the UK’s nation and regions, build communities and to ensure that digital technology plays a key part the post-COVID-19 levelling-up recovery.
Prior to joining techUK, Matt worked for several national education charities and membership bodies to develop their regional partnerships with schools, academy trusts, local authorities, and other stakeholders. He’s also worked with local authority leaders and other stakeholders to engage communities, work with elected members and improve public services.
He holds a BA in Politics from the University of York and an MA in International Relations from the University of Leeds. Away from work he’s a keen football fan and golfer.
If you’d like to find out more about our work in the nations and regions please get in touch with Matt:
Programme Manager, SME Engagement and Nations & Regions, techUK
Stephanie Barr
Programme Manager, SME Engagement and Nations & Regions, techUK
Stephanie is the Programme Manager for SME Engagement and Nations & Regions at techUK.
Working across the two programmes, Stephanie develops activities to support the growth and development of tech SMEs and engages with members and stakeholders more broadly to help strengthen regional tech economies.
Prior to joining techUK, Stephanie worked for a political events company and as a Senior Caseworker for an MP. She holds an MA (HONS) in Politics from the University of Glasgow.
Outside of work, Stephanie enjoys travelling, climbing and playing squash.
Programme Manager – Local Public Services and Nations and Regions, techUK
Luke Newcombe
Programme Manager – Local Public Services and Nations and Regions, techUK
Luke joined techUK in September 2025 as a Programme Manager for Local Public Services and Nations and Regions.
Luke works closely with members and stakeholders across industry and government at local, regional and national levels to support collaboration, drive innovation and strengthen tech-enabled public services. His work supports the development of strong local and regional tech economies by helping organisations to engage with public sector challenges, explore emerging technologies and build impactful partnerships.
Prior to joining techUK, Luke worked at Enterprise Ireland, the Irish government’s export development agency. He began by advising SMEs on export strategy to the UK and later focused on connecting Irish businesses with multinational organisations to foster strategic partnerships, drive international growth and support economic development.
Luke holds an MSc in Political Economy from the University of Amsterdam and a BA in European Studies from Trinity College Dublin.
techUK champions the tech sector throughout the UK. We work with local authorities, devolved government, and local and national policy makers to advocate for the tech sector in strengthening economic growth and resilience across the nations and regions. Visit the programme page here
Local Digital Index 2025 - Read now
techUK is delighted to publish the 2025 edition of our Local Digital Index. This is the fifth edition of the Index and provides updated data, new insights and a more user-friendly set of maps to help all those using the tool to inform their work and support decision making.
techUK’s Scottish Parliamentary Reception, 24 February
This reception will provide attendees, including MSPS, with an insight into techUK’s upcoming work, and the opportunity to discuss how the tech sector can grow in Scotland. Places are limited and we are currently operating a waiting list.
Our members develop strong networks, build meaningful partnerships and grow their businesses as we all work together to create a thriving environment where industry, government and stakeholders come together to realise the positive outcomes tech can deliver.
Matt is leading techUK’s work with members and stakeholders across the UK to increase the Local Digital Capital across the UK’s nation and regions, build communities and to ensure that digital technology plays a key part the post-COVID-19 levelling-up recovery.
Prior to joining techUK, Matt worked for several national education charities and membership bodies to develop their regional partnerships with schools, academy trusts, local authorities, and other stakeholders. He’s also worked with local authority leaders and other stakeholders to engage communities, work with elected members and improve public services.
He holds a BA in Politics from the University of York and an MA in International Relations from the University of Leeds. Away from work he’s a keen football fan and golfer.
If you’d like to find out more about our work in the nations and regions please get in touch with Matt:
Programme Manager, SME Engagement and Nations & Regions, techUK
Stephanie Barr
Programme Manager, SME Engagement and Nations & Regions, techUK
Stephanie is the Programme Manager for SME Engagement and Nations & Regions at techUK.
Working across the two programmes, Stephanie develops activities to support the growth and development of tech SMEs and engages with members and stakeholders more broadly to help strengthen regional tech economies.
Prior to joining techUK, Stephanie worked for a political events company and as a Senior Caseworker for an MP. She holds an MA (HONS) in Politics from the University of Glasgow.
Outside of work, Stephanie enjoys travelling, climbing and playing squash.
Programme Manager – Local Public Services and Nations and Regions, techUK
Luke Newcombe
Programme Manager – Local Public Services and Nations and Regions, techUK
Luke joined techUK in September 2025 as a Programme Manager for Local Public Services and Nations and Regions.
Luke works closely with members and stakeholders across industry and government at local, regional and national levels to support collaboration, drive innovation and strengthen tech-enabled public services. His work supports the development of strong local and regional tech economies by helping organisations to engage with public sector challenges, explore emerging technologies and build impactful partnerships.
Prior to joining techUK, Luke worked at Enterprise Ireland, the Irish government’s export development agency. He began by advising SMEs on export strategy to the UK and later focused on connecting Irish businesses with multinational organisations to foster strategic partnerships, drive international growth and support economic development.
Luke holds an MSc in Political Economy from the University of Amsterdam and a BA in European Studies from Trinity College Dublin.
