STUC launches proposals on tax

The STUC Scottish Trades Union Congress says the Scottish government could raise an extra £3.7 billion in taxes using its existing powers.

Its new report, Raising tax to deliver for Scotland, shows how changes to income and property tax from April 2024 could raise an additional £1.1 billion for Scotland’s public services.

The STUC says that progressive measures that would reduce income and wealth inequality — and raise another £2.6 billion for Scottish public finances — include the introduction of wealth taxes, replacing council tax with a proportional property tax, and introducing a super tax on private jets.

The move is a direct response to deputy first minister Shona Robison’s warnings last month, ahead of the Scottish Budget, of public sector workforce cuts. If fully implemented the £3.7 billion raised could fund 82,000 public sector workers, the STUC argues.

“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,” said STUC general secretary Roz Foyer. We can choose a different path.”

The LGIU local government think tank says nearly a quarter of Scottish councils are warning of effective bankruptcy. Its new research found every single council is planning cuts to services, affecting millions of residents.

Alongside planned cuts, 97% said they would be increasing fees and charges, and 89% would be spending reserves.