The Scottish technology and entrepreneurial landscape has experienced shifts in confidence while awaiting the recently unveiled Scottish budget, which outlines new NIS fees, tax responsibilities, educational funding, and investment reforms.
Of prime importance to Scottish business and tech, the Scottish government did announce its intentions to make Scotland “one of the world’s most attractive places for entrepreneurs and startups.”
A key highlight of the budget for the tech sector is the pledge to allocate £321 million to Scotland’s enterprise agencies that support emerging technologies, providing a morale boost to a sector that struggles to transition from the startup stage and maintain a sustainable, competitive level of investable funds.
As part of this initiative, the Scottish National Investment Bank is set to receive £200 million during the 2025/2026 period to offer financial assistance to Scottish businesses while fostering private sector investment.
Additionally, enterprise agencies are set to acquire over £320 million to attract businesses to Scotland and facilitate their growth.
A new enterprise package aimed at enhancing entrepreneurship and developing clusters of high-tech firms will be established with £15 million, which includes at least £4 million dedicated to assisting women in starting and expanding their businesses.
The government has also revealed plans to invest nearly £100 million in enhancing Scotland’s digital infrastructure, while £62 million will be earmarked for regeneration initiatives aimed at community revitalisation.
To assist in achieving its net zero objectives, the government will also significantly increase capital investment in the offshore wind supply chain to £150 million in 2025/2026, furthering the Scottish Government’s £500 million commitment to offshore wind development.
In general, tech and entrepreneurial organisations expressed optimism regarding their funding highlights in the new budget, particularly focusing on investments in emerging technologies and green energy.
“It is reassuring to see the Finance Secretary commit to supporting Scotland’s pursuit of long-term growth,” Karen Meechan, ScotlandIS CEO, said.
“By highlighting AI and robotics the Finance Secretary has identified two crucial emerging areas of the tech sector, but it’s important to recognise that our industry is broader than just these two areas.
“From green data centres and connectivity specialists to cybersecurity and climate tech, Scotland has an enormous amount to offer and it’s important that our sector receives support which is commensurate with our overall economic contribution.”
The substantial £321 million investment in emerging technologies was celebrated across various industry bodies, including the National Robotarium at Heriot-Watt University.
“This significant £321 million investment from the Scottish Government to support emerging tech represents a critical step in securing Scotland’s position at the forefront of the global robotics revolution,” the National Robotarium’s CEO, Stewart Miller, said.
Miller said the investment “will accelerate Scotland’s ability to compete in a market projected to reach £223 billion by 2032.
“With the UK currently lagging behind other G7 nations in robotics adoption, this investment sends a powerful signal about Scotland’s ambition to lead rather than follow in the next wave of technological innovation.”
Industry representatives also welcomed the funding for agencies that support enterprise and revitalisation efforts throughout the country, highlighting reports that suggest a decrease in new-to-market innovations the further one moves from London.
“We welcome the investment in enterprise agencies, supporting emerging tech, including AI, and programmes like Techscaler, to support new-to-market innovations in Scotland,” Heather Thomson, interim CEO of the Data Lab, said.
“With the rapid and continuing advancement of technologies, including data and AI and its applications, Innovation Centres across Scotland are supporting companies to navigate these tech developments, advancing groundbreaking ideas, and accelerating these projects into new markets.”
Myrtle Dawes, chief executive of the NZTC , commented: “The government’s continued support for offshore wind and green renewable energy sources has been well received with advocational groups like the Net Zero Technology Centre.”
“We welcome this government investment in Scotland’s burgeoning offshore wind sector, and commend Finance Secretary Shona Robison’s commitment to attracting private sector capital.
“For decades, Aberdeen and the north-east have been at the forefront of energy innovation, with talent, technology and wind power in abundance. Scotland has the necessary ingredients to become the net zero capital of Europe.”
Delving into the specifics of the Scottish budget leaves some wanting, although even organisations that voiced concerns generally welcomed the changes. A primary criticism was that the government’s measures were insufficient to effectively assist businesses.
Financial services experts expressed disappointment with the Scottish government’s stance on income tax, which is higher than the English rate for middle and higher-income individuals.
Additionally, some organisations were critical of the budget for not adequately addressing various financial measures, including non-domestic rates relief, claiming that it does not go far enough to facilitate business innovation and growth, let alone recovery.
Dr Liz Cameron CBE of the Scottish Chambers of Commerce said:
“Whilst we understand the tough choices the government had to make, the significant level of NDR relief will not fully mitigate the rising costs for many businesses at breaking point.
“Finance Secretary Shona Robison has recognised the difficulties and many obstacles confronting businesses but this budget doesn’t go far enough to help us to protect jobs and deliver the innovation, investment and growth Scotland so desperately needs.”
