Scotland's Tax Strategy 2024: Fairer Scotland Duty

Stage 1 – planning

Is this a ‘strategic’ programme, proposal or decision?

Yes – an assessment is necessary.

What is the aim of your policy/strategy/plan?

In 2023, the Scottish Government published its Medium-Term Financial Strategy (MTFS)^[1], which outlined our three-pillar approach to ensuring that the public finances are on a sustainable trajectory. Scotland’s Tax Strategy (“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^[2]. 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.

What is your timeframe for completing the Fairer Scotland Duty assessment?

The Fairer Scotland Duty assessment will be completed by November 2024, in line with the planned publication date for the document.

Who else will be involved in the assessment and what roles will they play? We’d expect involvement from policy and analytical teams as a minimum. It’s rarely appropriate for one person to conduct the assessment alone.

Scottish Government officials within the Tax Strategy, Engagement and Performance Division in DG Scottish Exchequer will complete the assessment. The Scottish Government Legal Directorate will provide feedback throughout the process.