Calls for higher taxes on wealthiest Scots to ease cost-of-living crisis

The Scottish Trades Union Congress (STUC) are calling for higher tax rates on the wealthiest Scots, which they say could raise an extra billion pounds next year.

The STUC published a research paper, authored by Landman Economics, which proposes raising the highest tax rate by 2%.

The pressure on the Scottish Government comes ahead of Deputy First Minister John Swinney's budget later this month.

Proposals for a new system

The paper proposes a package of changes, which also includes reducing the threshold for the higher rate of income tax from £43,000 to £40,000.

Trade Unions also want to see the higher rate raised from 41% to 43% and the top rate raised from 46% to 48%.

The STUC says these changes to income tax would raise £867 million each year.

They also say other reforms, such as increasing the Land and Buildings Transaction Tax, a tax on property purchases, and certain council tax bands would raise that figure to £1.3 billion.

Pressure on the Government

STUC general secretary Roz Foyer said: "The richest in our society have been profiteering from the pandemic.

"We need to ensure those with the least can afford to make it through this crisis.

"Our report makes it clear - the Scottish government could use their existing powers to reform taxes and better fund the public sector.

"This taxation package is designed to target those holding the most wealth and the most assets in our economy."

A Scottish Government spokesperson said: "We have already delivered the fairest and most progressive tax system in the UK, while raising extra revenue to invest in public services and Scotland's economy.

"The Scottish Government is committed to a fairer, more inclusive and fiscally sustainable form of local taxation.

"Decisions on tax policy for 2023-24 will be taken as part of the Scottish Budget on 15 December."

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