THE Scottish Greens have urged ministers to bring in a so-called “mansion tax” if the party is to support its Budget.
The Scottish Government will likely face a difficult time trying to pass its budget in a polarised Parliament, though needs just three more votes to pass legislation.
In recent years – first as an informal partner and then as a coalition member – the Greens have helped the Government pass its tax and spending plans, but the collapse of the Bute House Agreement earlier this year has strained the relationship between the two parties.
On Wednesday, the Greens called for a shift in land and buildings transaction tax (LBTT) – Scotland’s equivalent of stamp duty, which is levied against the sale of properties.
The change would institute an extra band, set at 15%, which would cover home sales worth £1 million or more.
Another change would see the 12% rate – the current highest – impact sales worth £650,000 rather than the current £750,000.
The Greens said such an increase in tax could be used to fund action on child poverty – First Minister John Swinney’s (below) key priority – and climate change.
“A mansion tax on the biggest and most luxurious houses is one of many ways we can raise more money to support services like the NHS while only impacting the very wealthiest people,” said Green finance spokesman Ross Greer.
“There is more than enough wealth in Scotland to end child poverty tomorrow, but far too much of it is in the hands of a very small number of extremely rich people and big companies.
“The powers needed to tax them fairly mostly sit at Westminster rather than Holyrood, but we can use tools like Scottish property taxes to make sure the richest people in society pay a bit more when they are buying a new house.
“A mansion tax could be introduced by the SNP now. It would raise crucial funds we could use to tackle child poverty and the climate emergency.
“The Scottish Greens have already delivered an income tax system for Scotland which raises £1.5 billion more every year for public services like our schools.
“If we want to protect these services though, we need to go further. That’s why we are proposing a range of options to the SNP.
“If they want Green votes to pass the Government’s budget, they know that the price of our support is more funding to tackle child poverty and the climate crisis. We are being clear about where that money could be raised from.”
The budget, a draft of which will be published on December 4, is expected to be difficult for the Scottish Government, which has already announced more than £500m of in-year cuts.
All eyes in the Scottish Government are on Westminster, where Chancellor Rachel Reeves will outline her tax and spending plans next week, with ministers north of the border hoping for increased funding for devolved areas.
Finance Secretary Shona Robison said: “The Scottish Government has taken a progressive approach to the setting of rates and bands for residential LBTT reflecting the specifics of the Scottish housing market.
“Our approach helps prioritise support for first-time buyers and home movers as they move through the market while also raising vital revenue to support public services.
“Decisions on the rates and bands of LBTT are taken as part of the Scottish budget process.”
