John Swinney has been urged to introduce higher tax rates for the wealthy or risk seeing Scotland’s public services crumble and poverty rates climbing.
Tax Justice Scotland – a coalition of more than 50 organisations, academics and think tanks – has today warned the SNP Government must not ignore repeated warnings from experts that public finances are under growing strain.
Campaigners said the election earlier this month had “largely sidestepped the reality of Scotland’s public finance challenge”.
In an open letter to the First Minister, the campaign is calling for Swinney to take decisive action using devolved powers – starting with a reform of the council tax system and accelerating plans to tax pollution.
Campaigners also argue income tax remains key to investing in “a fairer future and that the scale of financial pressures may necessitate broad-based rate increases”.
Workers in Scotland earning £33,000 or above already pay higher rates of income tax than those living elsewhere in the UK.
Jamie Livingstone, head of Oxfam Scotland, and a member of Tax Justice Scotland, said: “Scotland needs a post-election reality check – if we want a fairer and greener country, we need to invest in it. You can’t promise a better Scotland and avoid paying for it.
“We’ve seen some small but fair changes to income tax, but we urgently need to start taxing wealth properly to help fund the fairer future people were promised. In Scotland, that starts with replacing council tax and fast-tracking a tough tax on the wealthy private jet passengers polluting our skies.
“Standing still isn’t neutral: it means pressures on public services will mount, and unfairness remains baked into the system. But a different choice is possible: particularly if we choose to tax wealth more fairly. People want it. Scotland needs it. It’s time for politicians to get on and deliver it.”
Lisa Hough-Stewart, director of the Wellbeing Economy Alliance Scotland, said: “People in Scotland are clear they want action on inequality and support fairer taxation of wealth. Fair taxes are essential if we are to build a wellbeing economy – one where resources are shared more fairly, communities are properly supported, and the transition to a low-carbon economy is both fast and fair.
“The new Scottish Parliament has a choice: keep mindlessly rearranging the furniture or start rebuilding the house on fairer financial foundations.”
A Scottish Government spokeswoman said it was “working with local government to build cross-party agreement on the future of council tax in Scotland”.
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They added: “The introduction of a ‘Mansion Tax’ through two new high value property council tax bands will provide a targeted approach to improve fairness at the top end of the system, while generating a recurring source of increased revenue for local authorities.
“In line with the principle that higher rates of tax should be paid by those who choose to travel on private jets, which produce significantly more emissions per head than commercial flights, the Scottish Government will bring forward a Private Jet Tax from April 1, 2028.”