Scottish Budget 2026 to 2027: 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, including the interactions with reserved taxation and the fiscal framework. It was suggested there was an opportunity to craft a more positive, proactive message in how tax is communicated, drawing a clear link to funding public services. In addition, it was noted that providing some messaging between the UK and Scottish Budgets would be helpful in explaining why time was needed to formulate policy.

Business Impacts

• The stability offered on Scottish Income Tax with the commitment to no further rates or bands in this parliamentary term was welcomed, but the range of factors influencing the policy context, notably UK Government decisions, was also recognised. Business confidence was said to be low, partly driven by the UK Government’s increases to employer’s National Insurance Contributions.

Local Taxation

• The progress made on Council Tax reform was welcomed. The challenge of building consensus was noted. Taking a revenue-neutral approach to reform was broadly welcomed, though there was some discussion of additional tax powers for local authorities. It was highlighted that delivering reform was essential to maintain public trust in the reform process.

Tax Strategy

• The importance of considering the cumulative impact of all taxation, including reserved taxation, was highlighted. It was stressed that robust medium and longer term on planning on tax policy would support both business confidence and the wider economy. Beyond tax, it was highlighted that measures to bolster the tax base, bringing more people into work, and higher paid work should be a focus.