Scottish Budget 2025 to 2026: Public Attitudes to Tax

Key Themes from Ministerial Roundtables

Financial Literacy and Understanding

• Stakeholders highlighted the importance of improving the general public’s understanding of tax and tax policy. It was suggested there was an opportunity to craft a more positive, proactive message in how tax is communicated. It was stressed that this should be done jointly between government and other stakeholders

Tax Competitiveness

• The broader engagement between the Scottish Government and business was welcomed. The cumulative impact of tax and regulation on business was highlighted and it was noted that this should be considered in discussions around the Scottish Budget. The issue of tax divergence was raised and the importance of continuing to monitor the impact this has on Scottish business.

Local Taxation

• It was stressed that council tax should be considered as part of the basket of taxes impacting on individuals and households. Revaluation of council tax bands was raised, noting the inherent challenges. It was noted that revaluation may not be a net positive for those on low incomes.

Tax Strategy

• The ambition of the strategy was welcomed, particularly a focus on stability and continuity. A focus on the medium and long-term, as opposed to annual budget cycles was also welcomed. The importance of the Framework for Tax was noted and the need to build on this. It was noted that the Tax Strategy may help support achieve wider government objectives.