THE SNP government must “press further in the creative use of existing land and tax powers” to combat the impact of austerity, according to the party’s largest affiliate body.
The SNP Trade Union Group (SNPTUG) has proposed a motion calling for tax increases on Scotland’s richest through “realistic” exploration of a wealth tax and extended local authority powers.
The SNPTUG's national secretary Simon Barrow told The National said the proposals were about "using limited devolved powers to the max".
If delegates at the SNP conference vote to support the motion later in August, then it will formally be adopted as party policy.
It is understood that the motion leans on a report published by the Scottish Trades Union Congress (STUC) in December 2023 entitled: “Raising Tax to Deliver for Scotland.”
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The report, written by Landman Economics founder Howard Reed, concluded that “there is potential to fund increased investment in public services in Scotland using a progressive and costed package of tax increases”.
It said that, in the short run, measures such as income tax reform, an increase to the Scottish landfill tax, and increases to Land and Buildings Transactions Tax (LBTT), could see an extra £1.1 billion a year for public spending.
In the long run and through a range of “more complex reforms” – such as a form of wealth tax, a replacement for council tax, and a frequent flyer levy – a further £2.6bn could be raised annually, the report said.
The SNPTUG motion calls on the party to look to “increase the tax contribution of higher earners across Scotland; explore realistic options for a wealth tax; grant local authorities the power and discretion to introduce taxes which appropriately meet local needs and protect local services; [and] engage positively with the STUC on its proposals for generating more revenue”.
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SNPTUG national secretary Barrow told The National: “Our proposals are about ensuring that the wealthiest pay their fair share, that those on lower and middle incomes are protected, that public services are defended and strengthened, and that in using limited devolved powers to the max we show what more could be achieved with the real powers of independence.”
The resolution on tax proposed by the SNPTUG is one of 33 in a draft conference agenda published within the party.
The long list of resolutions has faced criticism from SNP members, with the focus largely on what has not been included, such as a discussion on the 2024 General Election result, or how to convince No voters to support independence.
In a foreword to the draft agenda, SNP national secretary Lorna Finn said that the resolutions will be put through a “delegates’ choice exercise, where all registered conference delegates can indicate a rating of each potential resolution”.
It is understood that this ballot will only be advisory and the final decision on what gets discussed and voted on will still sit with the conference committee.
The SNP’s annual conference is set to take place from August 30 to September 1 at the Edinburgh International Conference Centre.
The National understands that the final conference agenda is due to be published in the next few days.
The SNPTUG’s proposed motion on tax power in full:
6. EFFECTIVE USE OF TAX POWERS
This conference welcomes recent research from the STUC setting out how the Scottish Government might press further in the creative use of existing land and tax powers as part of a push to increase revenue and transform Scotland’s economy for benefit of the great majority.
Conference wishes to see the best possible use of Holyrood’s limited tax powers to protect public investment and expenditure in the face of more UK-driven austerity, to further our aims of a more just and equal society, and to demonstrate persuasively to the electorate the better direction a Scotland fully in charge of its own destiny could secure.
In order to mitigate damaging cuts and to build purposeful partnerships for economic change – not least with trade unions and people in local communities – conference therefore calls for practical moves to:
- Increase the tax contribution of higher earners across Scotland
- Explore realistic options for a wealth tax
- Grant local authorities the power and discretion to introduce taxes which appropriately meet local needs and protect local services
- Engage positively with the STUC on its proposals for generating more revenue to tackle poverty and inequality, and to invest in a sustainable economic and energy future
Conference recognises that many smaller European nations which an independent Scotland will seek to learn from generate substantially more revenue through taxation, generate more revenue locally, and enjoy significantly lower inequalities of wealth and income.
In making the case for Scotland’s prosperous, self-governing future, we believe that it is absolutely essential to use existing powers, however limited, to continue to protect our country from the ravages of UK policies, and to build deeper and wider support for gaining the economic mechanisms to improve life for all which can only come with independence.
SNP TRADE UNION GROUP
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