Report detail

The Scottish Government is expected to announce its 2026-27 budget on 13 January 2026.

Significant consideration has been given to policing’s requirements for revenue, capital and reform for the financial year 2026-27, and this was set out in detail in the Parliamentary submission to support pre-budget scrutiny at the Criminal Justice Committee held on 5 November 25.

FURTHER DETAIL ON THE REPORT TOPIC

Police Scotland was invited to provide views to support the Criminal Justice Committee (CJC) pre-budget scrutiny process in advance of the 2026-27 budget. The parliamentary written submission is attached at Appendix A.

Police Scotland has also outlined the 2026-27 budget proposal for revenue, capital and reform, including a number of budget scenarios as requested by Scottish Government. An update on the 2026-27 budget proposal is presented at Appendix B.Police Scotland is seeking an investment in policing to strengthen frontline services. To successfully embed a strengthened community policing model across Scotland, strengthen our resilience against terrorism and organised crime, protect our children from online abuse and exploitation and continue to investigate “cold cases” and engage with public and fatal accident inquiries.

Policing also requires a digitally enabled and sustainable policing model, which builds additional capacity and capability to meet digitally enabled and global organised crime.

Investment in our estate will deliver a more effective, sustainable estate that enables modern policing, supports the health, safety and wellbeing of our people and communities that we serve, and reduce long term operating costs.

Police Scotland are cognisant of the wider public sector financial challenges, but Policing must be considered in the context of the significant Reform that has already been delivered. As well as improving services across the country, around £300m has been removed from the annual cost base compared to legacy arrangements. As a result, there is now limited scope for policing to achieve significant savings without impacting workforce.

The next phase of Scottish policing reform seeks to re-shape Police Scotland and work to realise our 2030 Vision – to deliver safer communities, less crime, supported victims and a thriving workforce. Financial year 2026-27 is the final year of the first three-year business plan and policing can evidence strong progress to work more efficiently and thoughtfully with partners, and to prioritise our frontline. But further investment is required.

The budget proposal reflects the additional funding required in 2026-27:

• £25.2m received in 2025-26 for increases in national insurance and workforce modernisation to be baselined as part of the 2026-27 funding settlement.
• £79.7m of additional core revenue funding to fund the agreed pay offer, inflationary pressures, the impact of new legislation and other unavoidable pressures.
• £33.7m in-year investment to strengthen frontline policing – maximise officer recruitment over 2 years, continue workforce modernisation and invest in priority digital and cyber capabilities.
• Capital expenditure totalling £93.9m to support delivery of the estates masterplan to purchase land and upgrade properties; continue ongoing replacement of the fleet; and invest in key technology priorities including the ongoing roll out of body worn video and further system improvements.

Capital investment will require multi-year funding commitments and requires considerable planning and procurement lead times. As a result, to maximise annual budget allocations capital planning for 2026-27 priority projects must commence in earnest based on requested allocation levels. Capital plans will be amended accordingly following the budget announcement in January where allocations are confirmed.

A flat cash budget scenario has been developed following discussion with Scottish Government on potential funding scenarios. Our financial modelling shows that even if all workforce modernisation plans are reversed and recruitment is stopped immediately until the end of March 2027, a significant funding gap would remain with no means to manage this. A recruitment freeze until March 2027 would have significant operational implications for the organisation and even then, we could still not set a balanced budget.

Police Scotland remains closely engaged with Scottish Government citing a flat cash scenario is unachievable. We continue to highlight the constraints of a high pay / non pay cost structure and the significant successful efficiencies from reform already undertaken.

Scottish Government is expected to announce its 2026-27 budget on 13 January 2026, following the UK budget announcement in late November.

Engagement will continue with Scottish Government with regards to the 2026-27 budget submission, highlighting the operational, financial and organisational impact of a funding settlement that is less than required.