SCOTTISH ENTERPRISE ANNUAL REPORT AND ACCOUNTS 2026
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Performance Report
Look Forward - 2026-27
The Total Budget from Scottish Government for 2026-27 amounts to £237.1m including ring fenced allocations towards the Prestwick Hangar Expansion Project (£1.620m Resource and £1.520m Capital) and a DEL non-cash budget provision of £13.5m. The total budget is also net of £16.5m FT income budget to be generated by Scottish Enterprise in respect of anticipated returns based on financial asset investments originally funded from FT monies.
Grant in Aid Budget Allocation 2026-27:Original Budget Allocation
£000
Fiscal Resource114,919
Fiscal Capital83,558
Financial Transactions expenditure17,431
Financial Transactions income(16,500)
Total Cash Budget199,408
Fiscal Resource - expected credit losses20,500
Fiscal Resource - IFRS 16 adjustments(1,377)
Fiscal Capital - IFRS 16 adjustments5,044
Total Fiscal Budget223,575
Ring fenced DEL (Non-cash costs including depreciation)13,500
Annually managed expenditure-
Total Budget237,075
The total Scottish Enterprise Budget is supplemented by business income generated and used to support business plan expenditure during the year. In addition, further transfers of budget from the Scottish Government are anticipated through the normal operation of the Scottish Government's Budget Revision processes.
Although we have separately identified an ECL budget of £20.5m as a prudent starting position, the Scottish Government did not specifically ring-fence this budget. Should ECL costs be lower than £20.5m, excess budget can be transferred to core cash budget to support wider economic development projects as part of a package of flexibilities agreed towards the end of 2025/26. However, should ECL budget requirements increase above £20.5m, the Scottish Government have recognised that costs relating to past investments can be difficult for Scottish Enterprise to manage, therefore in line with 2025/26, we will closely engage with the Scottish Government on ECL costs and forecasts against budget