Pupils and teachers are bearing the brunt of the SNP’s council funding squeeze, according to new figures showing a massive 28 per cent fall in capital spending on education.
Stats published by the Scottish Government reveal that in 2025-26 cash-strapped local authorities reduced their non-day-to-day spending by seven per cent across the board, compared to the previous financial year.
Education was particularly badly hit, with spending by councils on school and nursery facilities dropping by £332 million, to £837m, in the space of 12 months.
Most of the capital spending undertaken by local authorities was funded by debt for the third successive year, illustrating the financial constraints they face due to SNP government cuts.
The Scottish Conservatives said it was “shameful” that the Nationalists were forcing many youngsters and teachers to work in crumbling school and nursery buildings.
Meghan Gallacher, the party’s education spokesperson, said the alarming figures added to the SNP’s “litany of failure on education”.
Scottish Conservative education spokesperson Meghan Gallacher said: “These shocking figures highlight the consequences of the SNP’s brutal and systemic underfunding of Scotland’s councils.
“It’s unacceptable and shameful that our children and their teachers and carers are being forced to make do with crumbling school and nursery buildings – but that’s the reality when capital spending is cut on such a mammoth scale.
“Scotland’s councils are hamstrung by years of underfunding by SNP ministers. Local authorities can barely cover day-to-day spending, so it’s inevitable that vital infrastructure projects are being shelved.
“The Nationalists wouldn’t have to impose these cuts if they reined in their out-of-control benefits bill.
“Crumbling school buildings join the SNP’s litany of failure on education. From broken promises on teacher numbers and Scotland tumbling down international league tables, to the epidemic of classroom violence, the record of John Swinney’s government is dismal.”
Notes to editors
Capital spend by local authorities fell by 7% in 2025-26. Capital expenditure across local authorities was £4,779 million in 2024-25, and is provisionally reported as £4,461 million in 2025-26, a decrease of 7% or £318 million. (Scottish Government, 30 June 2026, link).
Capital spend by local authorities on education fell by 28% in 2025-26. Capital expenditure across local authorities on education was £1.2 billion in 2024-25, and is provisionally reported as £837 million in 2025-26, a decrease of £332 million or 28.4%. (Scottish Government, 30 June 2026, link).
For the third straight year councils have funded most of their capital spend through debt. In-year borrowing from the Loans Fund is the largest source of capital financing, at £2,103 million in 2024-25, with increases to £2,228 million in 2025-26 and £3,349 million expected in 2026-27. Meanwhile in-year grants & contributions are expected to be only £1,779 million in 2025-26 and fall to £1,516 million in 2026-27. (Scottish Government, 30 June 2026, link).
Local governments face a combined funding gap of £1 billion by 2027. (Holyrood, 29 January 2026, link).
As council borrowing has increased, the SNP has been reducing capital funding to councils. In 2023-24 total capital funding was £876 million, and in 2026-27 it is £681 million. (Finance Circular, 29 February 2024, link; Finance Circular, 13 January 2026, link).
The share of funding provided to councils by the Scottish Government has fallen. From 65% in 2020-21 to 60% in 2025-26. (SPICe, 24 June 2020, link; Scottish Government, 28 February 2025, link).