Committee calls for ‘national conversation’ on tax policy

It is highly likely that Covid 19 has exacerbated existing structural inequalities in Scotland, according to the Finance and Constitution Committee’s budget report published today.

A fair and equal economic recovery should, therefore, focus support on lower income, less educated, younger workers and help their progression in the labour market, says the Committee in unanimously agreed findings..

The report also says a “fundamental examination” of the Scottish taxation system should be held in time for the 2023-24 Budget.

The committee calls for a ‘national conversation’ on what tax policy is designed to achieve – in particular its role in achieving a just, sustainable and strong economy as we recover from Covid 19.

Finance & Constitution Committee Convener Bruce Crawford MSP said: “Our Committee recognises that it is highly likely that Covid 19 has exacerbated existing structural inequalities – with people on low or precarious incomes, with fewer employment rights facing the harshest of consequences.  

“The pandemic has also had a devasting impact on the economy with some sectors and businesses being hit harder than others

“Our view is that a fair economic recovery from Covid will require a particular focus on supporting lower income, less educated and younger workers into the labour market.  It should also help them progress up the labour market while driving up standards of pay and workplace rights.

“If the reduction in jobs in hospitality and non-essential retail is to become a permanent feature, support for training in other sectors and industries is also likely to be important.

Calling for a ‘national conversation’ on the Scottish tax system, Mr Crawford added: “We now consider that a fundamental examination of what the Scottish tax system is designed to achieve must be undertaken.  In particular, it should look at the role of tax policy in achieving a just, sustainable and strong economy as we recover from Covid 19. 

“This would include the breadth and nature of the tax base, the impact of economic activity on the size of the tax base, and the relationship between local, Scottish and UK-wide taxes.

“The Committee’s view is that this requires a national conversation jointly led by the Government and Parliament and which includes a wide range of voices across Scotland.” 

The committee’s report says if the work was completed by September 2022 it would allow its successor Committee to consider the findings as part of its pre-budget scrutiny ahead of the Government preparing its 2023-24 Budget.

Find the full budget report of the Finance & Constitution Committee here..

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Public health leaders call for action to tackle inequaly

“From children growing up in poverty to families struggling to heat their house in the winter because their benefits have been cut, inequality affects every aspect of people’s lives – and that has a direct impact on their health and wellbeing”

The Faculty of Public Health (FPH)  today call on the Scottish Government to increase action to tackle the ‘bleak reality’ of health inequalities facing local communities across Scotland and invite the people of Scotland to support a stronger national focus on people’s health. 

‘Healthy Lives, Fairer Futures’, published by the Faculty of Public Health in Scotland sets out eight priorities for the Scottish Government to act on so that everyone has an equal chance of a long and healthy life, including:

  • Making sure that new laws impact positively on the health of Scottish people
  • Lessen the impact of UK-wide welfare reform
  • Set ambitious, binding targets to reduce child poverty

This call to action was written following an extensive consultation with the 350 FPH members who are public health experts living and working in Scotland to improve the health and wellbeing of local populations.

FPH members in Scotland, who work in a variety of roles advising, leading and coordinating public health work in the NHS, local councils and charities at a local, regional and national level  were invited  to identify threats to public health where more action could lead to a significant improvement.  Inequalities in health were identified as a very significant threat to health; a stark example of this is in Glasgow where people in the most deprived areas have a life expectancy 15 years less than those living in the wealthiest areas.

FPH Advocacy Lead in Scotland, Josie Murray, said: “Every day I speak to public health professionals who are challenged to improve health in the face of the significant health inequalities in Scotland.

“From children growing up in poverty to families struggling to heat their house in the winter because their benefits have been cut, inequality affects every aspect of people’s lives – and that has a direct impact on their health and wellbeing.

“We’re looking forward to working in closer partnership with other charities and organisations and together, fight for a fairer Scotland because we believe that every person deserves the best chance of a healthy life.  That’s why we’re calling on the Scottish Government to make sure that any new laws impact positively on people’s health or wellbeing, and to deliver on their manifesto commitment to make a greater impact in tackling health inequalities.”

Convenor of FPH in Scotland, Dr Julie Cavanagh, said: “Inequalities in health are not inevitable; changes are required across many areas of society and we are asking the Scottish people to support government action to take these changes.”

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Healthy Lives Fairer Futures