Use devolved tax levers to reduce and prevent poverty

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.

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.