Campaigners demand "genuine budget bravery" for tax reforms
They called for "fundamental change" in a letter to party leaders
Campaigners are calling for this week’s Scottish budget to be a “pivotal moment for fundamental change” in a letter to the leaders of the five main political parties at Holyrood.
The Scottish Government is facing an estimated £1.5bn funding gap ahead of Tuesday’s budget statement, set to be announced by Deputy First Minister Shona Robison.
More than 60 campaign groups, think tanks, charities, trade unions and other bodies have joined together to demand the First Minister shows “genuine budget bravery” by introducing “fairer” tax reform to improve investment in public services.
Among the groups is Oxfam, and head of the charity in Scotland, Jamie Livingstone, said: “The Scottish budget isn't just about balancing the books, it's also about re-balancing the scales to ensure that everyone can live fulfilling, dignified lives in fairer, greener and caring communities.
"Achieving that ambition requires significantly more investment underpinned by a fairer tax system."
"Pivotal moment for fundamental change"
He added: "The First Minister must move beyond short-term tax tweaks, however essential, and show genuine budget bravery by kick-starting common-sense tax reforms, challenging other party leaders to support the changes needed to deliver the transformative investment we all need."
Other groups involved include Save the Children, the Poverty Alliance, the Child Poverty Action Group, the Church of Scotland, think tank IPPR Scotland, and the Scottish Trades Union Congress (STUC).
They called on political leaders to "kick-start a series of fair tax reforms that together will serve as the linchpin for a more equitable, resilient, and prosperous Scotland".
The demand comes in the wake of a report for the STUC which set out how a series of short and long-term changes to taxes in Scotland could raise more than £3.7bn extra funding a year if implemented.
"Equitable, resilient, and prosperous Scotland"
Part of that was the suggestion of a 1p increase in the higher and top rates of income tax, to 43% and 48% respectively.
This would be alongside reducing the threshold for the higher rate, which would apply to people earning £40,000 or more, down from the current threshold of £43,662.
The STUC, together with groups such as Oxfam, the Poverty Alliance and IPPR Scotland, also backed a new 44% tax band, which would be levied against earnings between £75,000 and £125,140.
In their letter, the groups urged SNP leader Mr Yousaf, as well as the leaders of Labour, the Conservatives, the Liberal Democrats and the Scottish Greens, to "find consensus to chart a new path for social investment".
The organisations highlighted the "scandal" of child poverty, long waits for hospital treatment, problems with housing and roads infrastructure and the "damaging pattern of broken climate promises".
"Damaging pattern of broken climate promises"
They branded a "lack of consensus and collaboration" between the parties "about how to fairly and sustainably raise the additional resources needed" as "short-sighted".
Philip Whyte, director of IPPR Scotland, said: "At this critical juncture, the Government must do more than just make minor adjustments to tax and investment."
Instead, he said "bold action" was needed, calling on the Government to "match the ambition of its rhetoric, and seriously investing in public services while tackling poverty and climate change".
"One of the most challenging budget settlements since devolution"
A Scottish Government spokesperson said: "The Budget will be set out tomorrow by the Deputy First Minister.
"She has been very clear Scotland is facing one of the most challenging budget settlements since devolution because of sustained high inflation and a UK Government autumn statement that failed to deliver the investment needed in Scotland's public services.
"We are proud that Scotland already has the most progressive income tax system in the UK, protecting those who earn less and asking those who earn more to contribute more.
"This in turn allows us to provide a more comprehensive set of services than in the rest of the UK."