Commenting on the Scottish Government’s Budget, Laurie Macfarlane, Co-Director of the think tank Future Economy Scotland, said:

“Today’s Budget shows how devolution allows Scotland to make different choices on tax. While the UK Budget froze all income tax thresholds, the Scottish Government has raised the lower thresholds by 7%, putting more money in people’s pockets. Introducing a new ‘mansion tax’ on high-value homes is a small step forward, but still amounts to tinkering with a broken council tax system. We also welcome the new Private Jet Tax as a clear signal that those who pollute the most should pay more.

“But taken together, these measures do little to address Scotland’s long-term fiscal challenge. As the Scottish Fiscal Commission has highlighted, the government’s spending plans are reliant on making £1.5bn of efficiency gains over the next three years, which seems highly optimistic. And this is largely just to stand still – before improving the NHS, tackling poverty, or meeting climate goals.

"Sooner or later, we must confront an uncomfortable truth: if public services are to be protected, most of us will need to pay a little more tax. That means fundamental reform, not more short-term tinkering. The next Scottish Government will face a stark choice: embrace broader tax reform or accept damaging cuts. The status quo isn’t an option."

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[1] To request an interview with a spokesperson or for any other questions please contact laurie@futureeconomy.scot or call 07909107890 

[2] Future Economy Scotland is a non-partisan think tank that aims to create a new economy that is democratic, sustainable and just. The organisation does not have a formal stance on Scotland’s constitutional future, and is not aligned to any political party or any politician. The organisation is a not-for-profit company limited by guarantee operating with charitable principles. For more information visit: www.futureeconomy.scot