Press Release
FES response to Programme for Government
01 September 2026
01 September 2026
Commenting on the Scottish Government’s Programme for Government, Miriam Brett, Co-Director at the think tank Future Economy Scotland, said:
“Aspects of the Programme for Government are commendable. This includes the focus on prevention, expansion of community-owned renewables, and a commitment to deliver the long overdue Heat in Buildings Bill. However, the elephant in the room was Scotland’s £5bn budget gap. Although it was barely mentioned, it is evidently the driver behind sweeping plans for public body mergers and workforce reductions.
“While the public sector can undoubtedly become more efficient, trying to close the budget gap through cuts alone risks repeating the mistakes of austerity. While details are not yet known, merging public sector bodies will bring significant upfront costs, which could undermine efforts to close the budget gap. Health board centralisation could also undermine distinct geographical needs, which would disproportionately harm rural and island communities.
“Going forward, strengthening public services while meeting increased investment needs means confronting an uncomfortable truth: tax revenue will need to rise. This year’s Budget must include meaningful tax reform, starting by replacing the unfair and outdated council tax.
“Crucially, what is missing is an overarching industrial strategy that rises to the scale of the challenges we face. This should harness new governance models to maximise joined-up delivery, strengthen public sector capabilities, channel investment towards social and climate goals, and secure strategic public assets to generate recurring revenues for years to come.”
END
[1] The Scottish Government’s Programme for Government was published on 1 September.
[2] To request an interview with a spokesperson or for any other questions please email miriam@futureeconomy.scot or call 07428192437.
[3] Future Economy Scotland is a non-partisan think tank that aims to create a new economy that is democratic, sustainable and just. The organisation does not have a formal stance on Scotland’s constitutional future, and is not aligned to any political party or any politician. The organisation is a not-for-profit company limited by guarantee operating with charitable principles. For more information visit: www.futureeconomy.scot
“Aspects of the Programme for Government are commendable. This includes the focus on prevention, expansion of community-owned renewables, and a commitment to deliver the long overdue Heat in Buildings Bill. However, the elephant in the room was Scotland’s £5bn budget gap. Although it was barely mentioned, it is evidently the driver behind sweeping plans for public body mergers and workforce reductions.
“While the public sector can undoubtedly become more efficient, trying to close the budget gap through cuts alone risks repeating the mistakes of austerity. While details are not yet known, merging public sector bodies will bring significant upfront costs, which could undermine efforts to close the budget gap. Health board centralisation could also undermine distinct geographical needs, which would disproportionately harm rural and island communities.
“Going forward, strengthening public services while meeting increased investment needs means confronting an uncomfortable truth: tax revenue will need to rise. This year’s Budget must include meaningful tax reform, starting by replacing the unfair and outdated council tax.
“Crucially, what is missing is an overarching industrial strategy that rises to the scale of the challenges we face. This should harness new governance models to maximise joined-up delivery, strengthen public sector capabilities, channel investment towards social and climate goals, and secure strategic public assets to generate recurring revenues for years to come.”
END
[1] The Scottish Government’s Programme for Government was published on 1 September.
[2] To request an interview with a spokesperson or for any other questions please email miriam@futureeconomy.scot or call 07428192437.
[3] Future Economy Scotland is a non-partisan think tank that aims to create a new economy that is democratic, sustainable and just. The organisation does not have a formal stance on Scotland’s constitutional future, and is not aligned to any political party or any politician. The organisation is a not-for-profit company limited by guarantee operating with charitable principles. For more information visit: www.futureeconomy.scot