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STUC launch tax proposals to save Scotland’s public services

Scotland’s largest trade union body has implored the Scottish Government to “step up for Scotland” as the STUC launches their 2023 tax report showing an extra £3.7 billion could be raised per year using Scotland’s existing powers.

The report: ‘Raising tax to deliver for Scotland’ demonstrates how changes to income and property taxes from April next year could raise an additional £1.1 billion for Scotland’s public services.

Longer term, the introduction of wealth taxes, replacing the council tax with a proportional property tax and introducing a super tax on private jets, amongst other measures, could raise an additional £2.6 billion per year for Scottish public finances. The STUC claim the tax measures are progressive and would reduce both income and wealth inequality. The updated report follows a similar paper from the STUC last year, demonstrating the full powers of the Scottish Parliament to raise public revenue through progressive taxation. The report also contains detailed analysis of how the council tax could be replaced in a way that ensures low-income households don’t lose out. The move comes as a direct response to Deputy First Minister Shona Robison's warnings of public sector workforce cuts ahead of the Scottish budget this December. If fully implemented the £3.7 billion raised could fund 82,000 public sector workers. STUC General Secretary Roz Foyer has implored government ministers to “rise to the challenge” of protecting public services and reducing inequality, as increased funding pressures on the Scottish Government continue as a result of the UK Government’s autumn statement.

Commenting, Ms Foyer said:

“Our updated tax report makes clear that the Scottish Parliament has the power to make a real difference to our communities and raise over £3.7 billion of additional revenue for our public services.

“The Scottish Government must step up for Scotland. It’s clear that, with one foot out the electoral door, the Tories are hellbent on saddling any future UK Government with devastating public sector cuts.

“We can choose a different path. It’s within the powers of our parliament - through income, land and additional dwelling taxes – to raise an initial £1.1 billion from April next year. Coupled with longer-term wealth, property and aviation taxes, the Scottish Government can raise another £2.6 billion.

“At a time when workers are suffering the biggest drop in living standards since records began, and our public services need investment more than ever, it would be a chronic dereliction of duty for government ministers to sit back and let workers suffer Tory-inflicted austerity.

“They must rise to the challenge. For the sake of our workers, communities and public services, there is simply no other option.

Download: Raising Tax to Deliver for Scotland