Use devolved tax levers to reduce and prevent poverty

Last updated: 08/12/2022

Reform also needed to better tax wealth and carbon to fund national priorities

It is vital that the Scottish Government raises taxes on the wealthy to support an increased investment in affordable housing, childcare and enhanced social security to eradicate poverty.

- Satwat Rehman, Chief Executive of One Parent Families Scotland

The Scottish Government can use Holyrood’s tax powers to help increase the resources available next year and in future years, to support people on low incomes, invest in care and tackle the climate crisis, according to a group of prominent campaign organisations and a leading progressive think tank.

Ahead of the Scottish Budget on 15 December 22, the Poverty Alliance, CPAG in Scotland, Oxfam Scotland, the Scottish Women’s Budget Group, One Parent Families Scotland, and IPPR Scotland, say ministers should require a greater contribution from the better off to help alleviate funding pressures.

Soaring inflation and rising costs – including from public sector pay claims linked to the spiralling cost of living crisis – are exerting significant pressure on Scotland’s public finances. This pressure is likely to continue in the coming years, including as a result of a looming spending squeeze at UK level.

While Scottish ministers say their budget is “fixed” this financial year and have therefore made spending cuts and re-allocations to balance the books, this is not the case for 2023-24 when, the campaigners say, it must use devolved taxes to increase the resources available to it.

More info

The case for fairer taxation in the 2023-24 Scottish Budget and beyond to fight poverty, cut inequality, invest in care, and tackle the climate crisis.

See full details in our shared update