Local authorities in Scotland have seen their spending on school and education improvement projects slashed by more than £300 million, according to newly released Scottish Government figures. Capital expenditure on education fell by over a quarter in the last year, dropping from £1.169 billion in 2024/25 to a provisional outturn of £837 million in 2025/26.
While the budget is forecast to rise to £1 billion this year, this figure remains £169 million below the spending level of two years prior. These cuts impact not only schools but also nurseries and local skills initiatives managed by councils.
Scottish Conservative education spokesman Meghan Gallacher described the figures as a consequence of "brutal and systemic underfunding" by the Scottish National Party (SNP). She stated that the reduction in capital spending forces children, teachers, and carers to contend with deteriorating school and nursery facilities, attributing the situation to years of underfunding by SNP ministers which leaves local authorities struggling to cover basic operational costs, leading to the shelving of vital infrastructure projects.
Màiri McAllan, the Scottish Education Secretary, contested these claims, calling the Conservative portrayal "completely inaccurate and desperate." She asserted that the 2026-27 budget provides Scottish councils with record funding of nearly £15.7 billion for public services, including education. McAllan highlighted that under the SNP government, over 1,100 schools have been built or refurbished, and current statistics indicate that 92% of Scotland's schools are in good or satisfactory condition, an increase from 62% previously. She also pointed to the UK's smallest class sizes, competitive teacher pay, and record levels of young people in positive destinations, alongside improvements in literacy and numeracy.
The decline in capital spending was detailed in a Scottish Government report on the provisional outturn for local government in 2025/26 and budget estimates for 2026/27. Overall capital expenditure across local authorities decreased by 6.7% from £4.78 billion in 2024-25 to £4.46 billion in 2025-26. The budget for 2026-27 projects an increase to £5.3 billion.
Government figures on the school estate indicated that as of last year, 581 schools were rated as good, 1,670 as satisfactory, 189 as poor, and six as bad. Gallacher criticized the SNP's education record, citing issues such as teacher numbers, performance in international rankings, and classroom violence, labeling the current government's record as "dismal."
