“The Scottish Government must introduce bold and ambitious changes to raise revenue and avoid cuts to public services.

“The Scottish Government has recently utilised devolved tax powers, most notably through income tax changes. However, Scotland’s fiscal outlook is exceptionally challenging and it has been made worse by the UK Government’s Autumn Statement. 

“We recommend the Budget includes five key revenue raising measures to address this fiscal gap and avoid cuts to public services.

“The distributional consequences of freezing council tax will disproportionately benefit wealthier people. We need a long overdue overhaul of council tax, and the introduction of a progressive property tax based on up-to-date property values, with a higher surcharge for second homes. 

“Necessary steps should be taken during this parliamentary term to lay the groundwork for implementing a Land Value Tax.

“We recommend the rate of LBTT on non-residential transactions be equalised with that paid on residential transactions, and for a surcharge to be introduced on land holdings over a certain scale threshold (operating on a similar principle to the Additional Dwelling Supplement for residential transactions). 

 

“The Scottish Government should examine options for introducing a local wealth tax that would be levied on households with more than £1m of wealth.

 

“Introducing a Frequent Flyer Tax can curb emissions and address carbon inequality. Our research shows that the richest households consume 11 times more carbon from aviation than the poorest households.”

ENDS