Explainers

ScotWind

ScotWind is funding from leasing parts of the Scottish coastal seabed to energy companies for building and operating offshore wind farms. As the coastal seabed belongs to the Crown Estate, and the Crown Estate in Scotland was devolved in 2016, the Scottish Government can use this funding in the Scottish Budget.

The first round of leasing generated £755 million in funding for the Scottish Government, of which £96 million was used in 2022-23. Since then the Scottish Government has used revenue from ScotWind as a tool to balance the resource budget, assuming it will be used at the start of the financial year, but then reducing planned use as the year progresses. . The 2025-26 Budget presented in December 2024, included planned use of ScotWind revenues to support capital spending.

The Scottish Government’s planned use of ScotWind funding can either increase or decrease as the year progresses, depending on other changes in the Scottish Government’s funding position and spending needs.

Watch the How is the Scottish Budget funded? video to know more about the other sources of funding.