In Scotland, the fiscal and macroeconomic context for public infrastructure projects poses challenges due to global instability, Brexit, and pandemic recovery impacting supply chains and resulting in high inflation. Construction prices have risen over 27% compared to pre-Covid levels. Despite a real terms reduction in the UK capital block grant, the Scottish Government is maximising capital borrowing and utilizing revenues to invest in activities aligning with net zero ambitions. The focus is on maintaining existing assets to ensure service delivery. Progress in 2024-25 includes initiatives to transition buildings to clean heating, energy efficiency improvements, and financial support for households. The Hydrogen Innovation Scheme and other funds have been instrumental in driving technological progress in the hydrogen economy, carbon capture and storage, and industrial energy transformation. However, the Scottish Government needs to carefully consider affordability and prioritize capital resources amidst decreasing capital block grants and limited borrowing powers.