1. To ask the Scottish Government what its response is to the Scottish Trades Union Congress’s proposals for a local wealth tax. (S6O-02268)

W e welcome the STUC’s report and acknowledge its important contribution to the debate on tax policy. We believe in a fair and progressive approach to taxation through which those most able to afford it contribute more to sustaining public services, and we are also committed to a fair and fiscally sustainable form of local taxation.

In Buckie, Speyside, Elgin and Forres, half of the land available for housing is owned by just five landowners. Does the minister agree that the land and wealth taxes that are highlighted in the STUC report could be a useful tool for tackling unequal land ownership, increasing the number of homes in rural areas and capturing for public benefit a share of the increase in land value that occurs when development is supported through the planning system?

The Scottish Government recognises that tax could be an important mechanism in addressing land ownership patterns and influencing the market. We are currently reviewing the evidence that has been provided in response to our recent consultation on the proposed land reform bill and we will assess that separately as part of our wider approach to tax policy. That will include consideration of representations from stakeholders on a land value tax. However, I note that the Scottish Government’s ability to implement such a tax is constrained by the devolution settlement and that the Scottish Land Commission, in its advice to the Scottish Government, did not propose a single land value tax.

What plans does the Scottish Government have to carry out a review of the efficacy of the whole tax system in Scotland, given the warnings that are set out by the Scottish Fiscal Commission in its recent fiscal sustainability report?

We continually keep our policies on taxation under review, and we take decisions as part of the annual budget process. Through our new deal with local government, we are committed to further collaboration and engagement with local government on local taxation. The Deputy First Minister will carry out further engagement on tax over the summer months, details of which will be provided in due course.