We are very disappointed in the Scottish Government’s initial Budget proposal, which fails to address the rising need for mental health support across the country. 

Despite record demand, these Budget proposals will see a decrease to spending on mental health services from the previously frozen £290m to £270m in 2025-26.

There is clearly flawed logic in delivering a real terms cut in mental health spending when the economic cost of poor mental health to the Scottish economy sits at £8.8 billion per year. 

Evidence strongly supports early intervention and prevention as key to addressing mental health challenges. Yet, with higher demand and less funding, Scotland will see more people waiting longer for crucial support – increasing the risk that many more will fall deeper into preventable crisis. 

The Scottish Government were committed to increase mental health spending by 25% in this parliamentary session. Scotland’s Census data reports more people and carers are reporting a mental health condition than ever before, particularly younger people. Average adult mental wellbeing in Scotland remains below pre-pandemic levels. However, spending is not matching intent and could undermine the Scottish Government’s own Mental Health and Wellbeing Strategy.

Scotland’s public services are under increasing strain, with Audit Scotland calling on the Scottish Government to think differently: to seize opportunities for early intervention and prevention to help bring down costs, and deliver more effective public services. 

While we welcome increased funding for NHS Boards, cuts in mental health spending will only increase pressure and costs on the NHS as early intervention opportunities are missed. 

The Scottish Government itself has a manifesto commitment to dedicate 10% of the total NHS budget to mental health, a target which will be missed again through these Budget proposals. 

We continue to call for mental health services to receive the focus, funding and resources needed to effectively tackle Scotland’s mental health crisis. We need urgent change to the way we deliver mental health care and support, and how it is funded.  

What we’re asking for 

• 10% of health spending towards mental health services: Spend currently sits at around 8.7%. Given the rising demand for services and support, we’re asking for 10% in the finalised 2025/26 Budget. 
• Multi-year spending plans for the third sector and a halt to all in-year spending cuts for mental health: The Scottish Parliament’s Public Adult Committee report into adult mental health noted the importance of the third sector and raised concerns over funding, which is “fragile and uncertain.” 
• Mental health budgets to be inflation-proofed to protect services: Rising demand for mental health services in Scotland must be met with appropriate funding, which has been steadily eroded by high inflation. 
• A holistic approach across public and third sector planning to ‘mental health proof’ all public policy decisions: Audit Scotland highlights that investment into early intervention and preventative measures benefits people’s mental health, which is supported by the Mental Health and Wellbeing Strategy. Cuts will prevent people from accessing the support they need, when they need it and in a way which works best for them. 
• Recent UK Government changes to employer National Insurance contributions will impact the third sector: These additional costs were unbudgeted by charities and third-sector organisations, many of whom deliver critical public services. We ask the Scottish Government to consider compensation for the third sector so we can continue to deliver vital services that are more in demand than ever.