Scotland’s largest trade union body has urged the Scottish Government to prioritise the ‘people of Scotland and not political survival’ in their budget today (Tuesday).
The Scottish Trades Union Congress (STUC) are calling on the Scottish Government to take the “bold decisions” on reforming property, land and wealth taxes in their budget and to avoid “short-term electioneering” ahead of the election later this year.
Last year, on behalf of Tax Justice Scotland, the STUC published research showing Scotland’s five richest families hold more wealth than an entire quarter of Scotland’s population.
The research further showed that a modest 2% tax on all those with assets over £10 million could raise almost £500,000,000 for public services.
Commenting, STUC General Secretary Roz Foyer implored the Finance Secretary Shona Robison “do what is right” and deliver for Scotland’s workers during the budget.
Ms Foyer said:“Today, the Scottish Government must do what is right and prioritise the people of Scotland not political survival.
“With the election looming large, this budget can’t sacrifice the long-term wellbeing and growth of our nation on the altar of short-term political survival. We must see bold decisions from the Finance Secretary on reforming tax on property and land, along with the introduction of wealth taxes, not more of the same measures designed to prioritise short-term electioneering.
“STUC research has shown that modest wealth taxes on Scotland’s richest few can benefit the many with almost £500,000,000 raised for the public coffers in the process.
“These are the measures the Scottish Government must prioritise if they want the support of Scotland’s workers.
“This isn’t about the next four months; if the government wishes to re-take office for the next five years, we urge them to do what is right and stand beside Scotland’s workers tomorrow, prioritising public services, job security and decent pay in their budget measures.”
STUC research ‘Taxing Wealth for a Fairer and Greener Scotland’ can be viewed here:
With the UK and Scottish Budgets in mind, Holyrood.com asked a panel of experts if tax rises a price worth paying for improved public services. Here’s how four members of Tax Justice Scotland responded:
Yes. Abolishing the two-child limit was absolutely the right thing to do. It immediately lifts 350,000 children out of poverty, 20,000 of them here in Scotland.
“In a country as wealthy as the UK it would be utterly incomprehensible for a responsible government not to have acted. 60 per cent of these children are in working families, others have parents whose ability to work is constrained by disability, ill health and bereavement.
These parents pay taxes but now need support with the costs of bringing up the next generation. It is in our interests to pay what’s needed to ensure we have the public services and social security that protect us all when unexpected economic and health shocks hit. Tax is vital for investing in children, and we should all be proud to pay our fair share – for our children’s sake and for the long-term economic security of our country.
John Dickie, Director, Child Poverty Action Group (CPAG) in Scotland
It is uncontroversial and self-evident, I believe, to say that we all rely on good public services. Whether parents packing kids off to school, businesses moving goods around the country, or all of us maintaining our health, quality services are essential.
And if we are to deliver on our shared ambitions for our country – reducing child poverty, increasing educational attainment, tackling our wide health inequalities – then we need to raise resources to fund these services.
Tax is vital tool in reaching these goals. But precisely how we use tax is the crucial question. We are a wealthy country, and how that wealth is taxed must move to the centre of debates about taxation. Frustratingly, the recent UK Budget once again focused largely on the taxation of income. There needs to be a greater emphasis on the taxation of wealth, and in Scotland finally reforming council tax would be a great contribution to that debate.
Peter Kelly, Chief Executive, The Poverty Alliance
Absolutely, but tax fairness really matters too. Right now, people across Scotland are seeing local services vanish, public services – like the NHS – struggling, and folk trapped in poverty. Yet they know that wealth at the top is soaring.
We must see tax, when revenues are spent wisely, as an investment in a fairer and greener Scotland, healthier lives, and care and support when we need it most. It’s also a down-payment on a healthy, inclusive economy.
But it’s not just about how much tax is raised, it’s about who pays. Our tax system favours the very richest. The UK Government should do much more to make wealthier households pay a fairer share. In Scotland, we must better tax property wealth by replacing the outdated, unfair council tax and tax luxury pollution through a private jet tax. Public support is strong for the wealthiest paying more: what’s missing is political courage.
Jamie Livingstone, Head of Oxfam Scotland
Tax Justice Scotland works in solidarity with a growing global movement of people campaigning for far tax reforms. We are a partner of (but independent from) Tax Justice UK and the Tax Justice Network.
The work of Tax Justice Scotland is led by a steering group made up of a sub-set of its members who collaboratively work together to guide the campaign.
New report reinforces case for stronger wealth taxes as a key building block of wider package of UK and Scottish fair tax reforms
A new report for Tax Justice Scotland has exposed Scotland’s staggering wealth gap with just five families holding more wealth (£19.3bn) than a quarter of Scotland’s population with the least wealth combined (£18.9bn).
The news comes as campaigners, frontline delivery organisations, academics, trade unions and others gather in Edinburgh for a major tax justice conference to explore the urgent need for a package of fair improvements to the tax systems at Scotland, UK and global levels.
The report, Taxing Wealth for a Fairer and Greener Scotland, produced by the Scottish Trade Union Congress (STUC) on behalf of the campaign, makes clear that fairer taxes on wealth at UK and Scotland levels must be at the heart of this package of reforms to invest in and drive progress towards a fairer, greener and more prosperous future.
Tax Justice Scotland says improved wealth taxation is only one part of a fairer tax system and is today also challenging all political parties in Scotland to outline detailed proposals for using the powers of the Scottish Parliament to improve devolved and local tax systems.
The STUC analysis highlights the extreme end of wealth inequality after official data showed the wealthiest 2% of Scottish households have more wealth than the poorest 50% combined.
The report shows that the fortunes of Scotland’s very wealthiest people are surging far faster than people’s pay packets. Between 2024 and 2025, the combined wealth of Scotland’s ten richest families shot up by almost 8%, outstripping average earnings growth (5.9%).
Incredibly, the five richest families in Scotland are estimated to have more wealth (£19.3bn) than the Scottish Government collected in Income Tax (£19bn) last year.
For illustrative purposes, the STUC analysis shows that a modest annual wealth tax of just 2% on all those with assets of more than £10 million could raise nearly half a billion pounds (£492 million) from Scotland’s 10 richest families alone, enough to pay for 12,000 new nurses, or 11,000 new teachers, or to double the Scottish Child Payment and lift more than 30,000 children out of poverty.
Given such a wealth tax would apply to all those with assets of more than £10 million in Scotland, it would raise even more.
Roz Foyer, General Secretary of the STUC, said on behalf of Tax Justice Scotland:“This research lays bare the shocking concentration of wealth in Scotland. While families across the country are struggling to pay their bills, a handful of the super-rich are lining their pockets with more and more money.
“It doesn’t have to be this way: fairly taxing this eye-watering wealth could, according to STUC research, mean more 12,000 new nurses in hospitals, 11,000 more teachers in classrooms or to double the Scottish Child Payment and lift more than 30,000 children out of poverty
“Politicians across the UK should be in no doubt that it’s their dithering and delay that is deepening the crisis within our communities and public services. The powers to make a radical change to our tax system are at their disposal. The excuses must end. Scotland can work for everyone, not just the richest few. It’s time that work was started without equivocation.”
Tax Justice Scotland believes a series of tax reforms are needed to deliver the investment Scotland needs, while incentivising positive behaviours, to tackle poverty, strengthen public services, cut emissions and support fair work, while reducing the many forms of inequality that persist, including gender and economic inequality.
The campaign says this package of reform is essential to building a fairer, greener and more prosperous future for everyone in Scotland. While, over time, raising enough revenue is likely to require broad-based tax increases – fairer wealth taxation is vital.
As the Chancellor prepares her autumn Budget, campaigners point to growing momentum behind fairer taxes, with 68% of people in Scotland thinking the very richest should pay more. Over three-quarters (79%) of people in Scotland back a UK-wide wealth tax on the very richest people.
Previous analysis has shown that the measure, alongside a series of other reforms to improve existing UK-level taxes on wealth, like increasing Capital Gains Tax and applying National Insurance to investment income, could raise up to £60 billion a year across the UK.
A UK-wide wealth tax, if introduced, could help boost the Scottish Budget. But the STUC’s analysis shows that if the UK Government fails to act, the Scottish Parliament could use its own tax powers, with HMRC support, to introduce a locally-administered wealth tax.
The findings come against a backdrop of growing fiscal pressure: the Scottish Fiscal Commission has warned of a £4.7 billion shortfall in the Scottish Budget by the end of the decade, alongside mounting longer-term challenges. The Commission is urging all parties to work together before and after the Scottish election to address these challenges.
While making the case for improved taxation on all forms of wealth, Tax Justice Scotland says improving tax on property wealth in Scotland is particularly essential. Campaigners say the outdated and unfair Council Tax, still based on property values from 1991, must finally be replaced with a reformed property tax that reflects today’s housing wealth.
Property wealth has surged by almost £100 billion in just ten years, yet the Council Tax system remains frozen in time, letting those in the most expensive homes pay far less than they should, while many others are left paying over the odds.
Tax Justice Scotland say replacing Council Tax, alongside wider reforms to better tax the wealthiest and to build upon modest but progressive changes to Income Tax in Scotland, would collectively make sure those with the broadest shoulders contribute a fairer share.
Campaigners emphasise that while tax isn’t a silver bullet, it can play a much bigger role in building the Scotland we want to see.
Jamie Livingstone, Head of Oxfam Scotland, a member of Tax Justice Scotland, said:“Our tax system can do so much more to help build the country the people of Scotland want, but, right now, it’s stacked in favour of the wealthy.
“It’s time to fix the system; and that must include better taxing wealth right across the UK and, in Scotland, finally replacing the outdated Council Tax.
“With the Scottish election fast approaching, all political parties have a clear choice: defend a broken system that protects the richest while short-changing critical priorities or back a fairer one that delivers a fairer, greener and more prosperous country for all of us.”
Scotland’s party leaders are being urged to unite and take bold, immediate action to overhaul the devolved tax system, to build a fairer, more prosperous, and sustainable future for all.
In an open letter, Tax Justice Scotland, a newly formed campaign group which represents over 50 Scottish civil society organisations, trade unions, economists, and academics, says that Scotland’s existing tax system is undermining public services while exacerbating economic and wider inequalities. They say it’s time to break free from short-termist tax policymaking.
Campaigners say that a fairer, more effective devolved tax system is needed if the Scottish Government is to deliver on its legal commitments to cut child poverty and tackle climate change, while avoiding damaging cyclical emergency budget cuts.
Ahead of the publication of Scotland’s new Tax Strategy and the 2025/26 Scottish Budget, the Tax Justice Scotland campaign is warning Scotland’s finances are “beyond breaking point”, while urging leaders to “stop dodging the hard but necessary decisions” on tax reform for future stability.
The letter says:
“Scotland’s finances are beyond breaking point. Tweaking the status quo on tax is not working; it’s failing our communities, our economy, and our planet. Inaction will condemn current and future generations to deepening inequality, crumbling public services and environmental collapse.
But you have the power to choose a different future.
To do so, you must choose to move beyond inadequate tweaks to our flawed tax system. It’s time to think beyond the narrow constraints of budget and electoral cycles to deliver a better and fairer tax system while ensuring those with the broadest shoulders carry the greatest weight of change.”
While the recent UK Budget will boost public spending and somewhat ease immediate finance pressures in Scotland, this won’t put Scotland’s public finances on a sustainable path.
The campaign is urging the Scottish Government to leverage the upcoming Tax Strategy as a catalyst for overdue and essential long-term reform.
Tax Justice Scotland also sets out a series of immediate steps the Scottish Government should take, using devolved powers, to make progress towards a fairer tax system:
Launch an immediate nationwide property revaluation, the first critical step to finally scrapping the outdated and unfair Council Tax. At the same time, Ministers must start the search for fairer, more equitable alternatives.
Kick-start a bold plan to tax wealth more fairly, ensuring those with the most contribute their share to Scotland’s future.
Make polluters pay for the damage they cause while encouraging greener, fairer business practices, including through reforms of existing Non-Domestic Rates and tax breaks.
On behalf of Tax Justice Scotland, Lewis Ryder-Jones, Oxfam Scotland’s Advocacy Adviser, 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.”
Tax Justice Scotland has been established to build public and political pressure for tax reforms in Scotland, as part of improved UK and global tax systems.
The letter coincides with growing global momentum on tax, with the leaders of G20 governments making a ground-breaking commitment to cooperate on taxing the world’s super-rich at a summit in Brazil last week.
Bold, well-designed changes to devolved taxes could build on this global momentum, unleashing more resources to invest in healthcare, education, social security and climate action while reducing the widening gap between the wealthy and the rest of society in Scotland.
Lewis Ryder-Jones 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.”
