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The National (Scotland)
The National (Scotland)
National
Lucy Jackson

Organisations call for progressive tax reform in Scotland

A NEW campaign is demanding Scotland’s political leaders take “bold action” on tax reform – insisting that simply “tweaking” the existing system risks “failing our communities”.

More than 50 organisations and individuals, including charities, trade unions, economists and academics, have joined together to form the Tax Justice Scotland group.

With Scotland’s finances now “beyond breaking point”, the new coalition insisted that “tweaking the status quo on tax is not working”.

Instead, they have called on the country’s political leaders to back an “overhaul” of the existing tax system, saying that Scotland has the opportunity to lead a global “charge for progressive tax reform”.

In a letter sent to the leaders of Scotland’s main political parties, they call on them to “be bold, decisive, and willing to step up”.

Their message to First Minister John Swinney, Scottish Labour leader Anas Sarwar, Scottish Tory leader Russell Findlay, Scottish Green co-leaders Patrick Harvie and Lorna Slater, and LibDem leader Alex Cole-Hamilton is that “it’s increasingly clear that fairer – and sometimes higher – taxes are essential to support a more dynamic, prosperous and sustainable economy”.

The plea comes ahead of Finance Secretary Shona Robison (below) unveiling her budget for 2025-26 to MSPs at Holyrood on December 4.

The group – which includes bodies such as Christian Aid Scotland, the Poverty Alliance, Energy Action Scotland, Friends of the Earth Scotland, Pregnant then Screwed, Save the Children and the Scottish Trades Union Congress (STUC) – set out a series of “key stepping stones towards a fairer tax system”.

They suggested an” immediate, nationwide property revaluation” be carried out as the “first step toward abolishing the unjust council tax”.

The new group also wants the Scottish Government to “kick-start a bold plan to tax wealth more fairly, ensuring those with the most contribute their share to Scotland’s future.”

In addition, it says action is needed to “make polluters pay for the damage they cause” while at the same time encouraging greener, fairer business practices – with Tax Justice Scotland suggesting reforms to non-domestic rates could be part of this.

The plea comes after MSPs on Holyrood’s Finance Committee said they were “deeply concerned” about the lack of a strategic approach to finances.

Last week, public spending watchdogs at Audit Scotland highlighted concerns around the Scottish Government’s use of short-term measures to balance the books in each financial year.

Speaking on behalf of Tax Justice Scotland, Lewis Ryder-Jones of Oxfam Scotland – another organisation in the new coalition – said: “Scotland’s finances are perpetually teetering on the edge of a perilous precipice. Poverty and inequality are rampant, public services are badly stretched and the climate crisis is escalating.

“Fairer taxes, alongside a fairer economy, and ensuring public money is well spent, can and must do more to secure a fairer, greener future for everyone.”

He added: “Scotland can lead the way in the UK and internationally. It’s time for our leaders to stop dodging the hard but necessary decisions, and instead start making the case that fairer taxes are good for the economy.

“We need grown-up tax governance that takes Scotland’s future seriously; moving beyond piecemeal, patchwork fixes and instead delivering a tax system that works for everyone, not just the privileged few.”

A Scottish Government spokesperson said: “The Scottish Budget will prioritise our resources in line with the First Minister’s priorities of ending child poverty, growing the economy, investing in public services and supporting the path to net zero.

“It will be published next week alongside a Tax Strategy developed through extensive engagement with organisations across Scottish society including Oxfam and other members of Tax Justice Scotland.

“Scotland already has the most progressive income tax system in the UK, protecting those earning less and asks those earning more to contribute more. This raised an additional £1.5 billion revenue in 2024-25 to invest in our public services compared with if we matched UK Government policy.”

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