Funding a social renewal: Scottish budget briefing paper

Article

Ahead of the Scottish government budget we analyse options for raising additional revenue to protect public services and fund the strengthening of the social security safety net that people in Scotland want to see. We find that each additional £100 million the Scottish budget needs could be raised by adding just half a percentage point to the higher and top rates of tax.

The Scottish government has made bold progressive pledges including ending child poverty and developing a minimum income guarantee. Our previous reports have set out the roles of social security, public services and fair work can jointly deliver these objectives. In this report we set out options available to the Scottish government to fund these pledges.

At a time of economic turbulence, protecting those on the lowest incomes is more critical than ever. We show how additional revenue can be raised without increasing taxes at the lower end of the income spectrum. Our proposals are highly progressive, with tax increases concentrated among the highest 10 per cent of earners.

Over the longer term, reforms to taxation in Scotland are needed to address inequality. We recommend a review of income tax, and reform of the outdated council tax.

Related items

  1. A busy bus full of people of all ages. An older couple smile at a younger woman with a baby in a pushchair

    Everyday concerns: What people want from transport

    Transport has a key role to play in achieving the UK government's missions and improving lives. 
  2. An unrecognisable woman playing a slot machine in a social club

    Reforming gambling taxation: How to lift half a million children out of poverty

    A key priority for the government’s upcoming child poverty strategy should be to remove the two-child limit and scrap the household benefit cap.
  3. A primary school classroom. In the foreground are pots of pencils and rulers and water bottles. Children in blue school uniform are blurred in the background

    The IPPR Inclusion Taskforce

    Our new inclusion taskforce will focus on reforming England's failing special educational needs and disabilities (SEND) system.