Scotland's Tax Strategy 2024: equality impact assessment

Background

In 2023, the Scottish Government published its Medium-Term Financial Strategy (MTFS)^[3], which outlined our three-pillar approach to ensuring that the public finances are on a sustainable trajectory. The Tax Strategy delivers on the pillar “to maintain and develop our strategic approach to tax”, sitting alongside pillars that focus spending decisions on Government priorities and prioritise economic activities to broaden the tax base.

The Tax Strategy sets out our medium-term ambitions for how the tax system should develop to support the delivery of our four government priorities: eradicating child poverty, growing the economy, tackling the climate emergency, and ensuring high quality and sustainable public services.

The actions set out in the Tax Strategy build on the principles set out in the Framework for Tax^[4]. They will support the progression to a tax system which aligns policy aims with outcomes, is informed by robust evidence and engagement with others, and enables us to take a system wide and comprehensive approach to tax policy in Scotland.

These will be prioritised around five areas:

• Priorities for the Existing System.
• The Economy and the Tax System.
• Administration of the Existing Tax System.
• Evidence and Evaluation.
• Future Priorities.

The Tax Strategy began development following the commitment set out in the Medium-Term Financial Strategy (MTFS) 2023. Following this, Scottish Government developed a comprehensive plan, which included a two phased stakeholder engagement plan.

The Tax Strategy was originally intended to be published as a draft for consultation; however, due to the change in Scottish Government First Minister in May 2024, followed by the UK General Election in July 2024 and Scottish Government’s legal obligations around that period, this was not able to occur before the Scottish Parliament 2024 summer recess.

As such, it was decided that the Tax Strategy would be published as a final document alongside the next fiscal event (2025-26 Draft Budget) and that this would be supported by a full programme of external stakeholder engagement over the period of August-October 2024, in lieu of a consultation.