Thinking bigger on tax in Scotland: Using Scotland's local tax powers to their full potential
Article
In recent years the Scottish parliament has seen the devolution of significant new powers over taxation. In many ways the policy debate has been dominated over how these new powers, particularly over income tax, should and could be used. However, the focus on Scotland’s new powers has dominated to the exclusion of how pre-existing powers could potentially be helpfully employed in this new context.
This thought paper outlines the existing local government funding context, including recent cuts to local government funding in Scotland, and current funding arrangements, including that Scottish government grants account for over half of local government income. It also considers some of the ongoing reforms to local taxation, including through the forthcoming tourist tax and workplace parking levy.
The paper then looks at a number of international examples of sub-state taxes, before considering which of these international examples could be applicable in Scotland.
The paper considers five illustrative examples of potential new forms of local tax and local funding arrangements in Scotland.
Related items
A longer-term tax strategy for Scotland: what needs to change?
Tax is a polarising issue. People hold very strong opinions on the matter. Often these strong opinions are, to put it mildly, not supported by the available evidence. And, frustratingly, the available evidence is not always as complete as…Joined up thinking: Seven tests for the integrated national transport strategy
The UK government is producing England’s first integrated national transport strategy. In this blog, we set out IPPR’s seven tests to judge if the strategy seizes the opportunity to create a fairer, greener and healthier transport system…Earning vs owning: Rescuing opportunity in the asset economy
Life chances are increasingly determined by what you inherit, not what you do. But what can we do about it?