I spoke in Parliament today in support of fair, progressive taxation - Scotland's more progressive income tax system is already raising up to £1.8 billion more than if we'd mirrored UK policy, funding childcare, the Scottish Child Payment and better public sector pay. I also backed a private jet tax and mansion tax, and called for a fair taxation system that upholds our social contract with the Scottish people.

 

Full text of speech:

It is clear that the different decisions on income taxation levels that were made in Scotland, whereby those who earn a little bit more are asked to pay a bit more, have contributed to securing additional revenues for various desirable outcomes that I would hope most of us in Parliament would wish to see. The Scottish Fiscal Commission estimates that the SNP Government’s income tax decisions since devolution will raise up to an additional £1.8 billion in the tax year 2026-27 compared to the position had the Scottish Government mirrored UK policy.

Scotland’s more progressive income tax system has supported a position in which the average pay for public sector workers in Scotland is notably higher than it is in the UK as a whole. Our NHS, where we have invested strongly in the pay of our healthcare professionals, is a very good example of that. Our tax system has also contributed to funding Scotland’s strong childcare offer, which has resulted in families across Scotland benefiting from the provision of more than 1,140 hours of high-quality early learning and childcare since 2021, which is worth around £6,000 per child each year. It has also contributed to the almost £0.5 billion that the Scottish Government has invested in our Scottish child payment, helping to keep 100,000 children out of poverty here. It is also worth noting that most people in Scotland pay less tax than their counterparts elsewhere in the UK.

There has always been a political kickabout over the expression “free” when it is used to describe the delivery of Scottish Government policies—free school meals, free tuition, free prescriptions, free bus passes and so on. No one pretends that any of that is free.

However, let me set political decisions in context. The Scottish taxpayer has to pick up its share of the tab for spending decisions that are reserved to the UK Government. Examples of that include the £3 billion annual running costs of Trident, the £41 billion cost for the new Dreadnought-class submarines to replace the current fleet, and another £15 billion for replacement warheads—and those are all decisions that have been taken by the UK Government in the current Parliament. I would much rather see our Scottish Government invest in our social protections here, in Scotland, than in the illusory protection allegedly offered by nuclear warheads. There is another way, and it is the Scottish way.

The Scottish Government’s motion supports

“fair, progressive and sustainable taxation to support the delivery of public services.”

It reiterates the SNP position on

“the creation of a private jet tax and a mansion tax”.

I can say to Lord Offord that those policies are not curveballs—they were in the SNP manifesto.

With regard to the jet tax, I welcome the submission that we received from Oxfam Scotland, which strongly supports the introduction of an air departure tax with a higher rate for those choosing to travel by high-polluting private jets. Its analysis showed that,

“in just the first 10 months of last year, more than 10,500 … jet flights took off or landed at Scottish airports”.

This Parliament used to speak often about the polluter-pays principle. Money secured from the new tax could help to support our public bus network, for instance. I acknowledge the good work of the Strathclyde Partnership for Transport in taking forward a bus franchising model, which will not be cost free—it will require revenue support.

Willie Rennie
Bob Doris seems to be implying that the destination of the new taxes that are being proposed would go into an expansion of public services or at least entitlements. Does he not consider that any of that money should go towards reducing the £5 billion deficit that is coming down the track?

Bob Doris
The medium-term financial review that Mr McKee has the invidious task of implementing through public service reform has been clearly set out, but every additional penny that is raised here, in Scotland, can help to bolster the social protection dispense that we all want. Bus franchising support could be part of that, as far as I am concerned, but I appreciate the point that Mr Rennie seeks to make.

A substantive part of the motion is on a mansion tax, which is due to be brought forward in 2028. Those proposals will add two additional council tax bands to be applied to properties valued at more than £1 million, with all the funds raised going directly to local areas to support public service delivery. Before Mr Rennie intervenes again, which he might wish to do, I note that those funds will depend very much on how many properties are worth more than £1 million in each local area. It is the revenue grant from the Scottish Government that provides the vast majority of local authorities’ income—I get that. However, in the round, I would say to Mr Rennie and other members in the chamber that additional moneys would be welcome.

I very much support the proposed mansion tax, but it will require careful scrutiny and implementation. It will involve a targeted revaluation, and it will be interesting to see how much each local authority will ultimately benefit.

The new council tax bands on properties worth more than £1 million should not get in the way of work—across parties and across the Government—that needs to be done regarding the council tax more generally. I welcome the reassurances that the Deputy First Minister has given this afternoon in relation to that.

Perhaps the most pertinent part of the Scottish Government’s motion is the part that recognises that

“Scotland’s current powers limit the scope of additional wealth taxation”,

with a call for us to

“explore what further steps could be taken either within the current system or with full fiscal powers.”

In another excellent first speech, Martyn Day spoke about inheritance and capital gains taxes. There is also income tax on savings and shared dividends and a whole variety of other taxes—there is a basket of taxes that we could consider.

I am not suggesting that we should tax the rich; that is not my demand or what I am calling for. We must go back to the underlying principles of the SNP motion, that our tax system should be “fair, progressive and sustainable”, and it all has to be balanced.

I am not calling for us to tax the rich; I am calling for a fair taxation system in the round. We must surely be able to do more on that. As the STUC reminded us in its briefing for today’s debate,

“Five families hold more wealth than a quarter of Scotland’s population with the least wealth combined. The wealth of Scotland’s ten richest people is now more than £23 billion, nine times what it was in 1999. This exceeds the Scottish Government’s projected Income Tax revenues for 2026/27”.

As I have said, I do not want to tax the rich; I simply want a fair taxation system and an underlying social contract with the Scottish people that underlines our commitment to social justice.