Scotland's Tax Strategy: Building on our Tax Principles
Scotland's Tax Strategy: Building on our Tax Principles sets out the next steps in the evolution of the tax landscape in Scotland, expanding on our Framework for Tax published in 2021.
Ministerial Foreword
Today, alongside our draft 2025-26 Scottish Budget, I am pleased to set out the next step in our Scottish approach to tax. Scotland's Tax Strategy: Building on our Tax Principles, builds on the foundations of our approach to taxation set out in the 2021 Framework for Tax[i]. We have taken bold, necessary action on tax in recent years, to ensure that our vital public services are prioritised. Our policy decisions were not taken lightly and ensure that progressivity is at the heart of our tax system, asking those with the broadest shoulders to contribute more to support this vibrant and growing nation. These contributions have enabled us to deliver seven new benefits, including the Scottish Child Payment - helping to create a healthier, more prosperous, and equal Scotland, from which we all benefit.
Our tax decisions are made in the context of the wider tax environment that is largely determined by the UK Government’s decisions. It is challenging to give certainty against the backdrop of significant change at a UK level. Within the past 18 months, we have witnessed the previous UK Government reduce employee National Insurance contributions by 4 percentage points, while the new UK Government has increased employer National Insurance contributions by 1.2 percentage points.
Within this changing UK context, I want to give the people and businesses of Scotland all the certainty I can. My intention for the remainder of this Parliament is not to introduce any new bands or increase the rates of Scottish Income Tax, our largest source of tax revenue.
This Tax Strategy sets out the steps that will underpin this government’s approach to developing tax policy; ensure the tax system raises the revenue needed to achieve our priorities; and support our growing economy.
This Strategy has been founded on wide-ranging engagement with business organisations across Scotland, tax professionals, civil society and many other stakeholders. I would like to thank everyone who has taken the time to engage, discuss and provide views during its development and I want to see that continue as we implement this Strategy and report back on progress in early 2026.
Shona Robison MSP
Cabinet Secretary for Finance and Local Government
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