New advisory group will help ministers with tax strategy in future budgets

A new group to provide Scottish ministers with “strategic advice” on tax will bring together economists and academics, along with anti-poverty campaigners.

The Scottish Government announced it is to establish a Tax Advisory Group, as pledged in the medium term, financial strategy.

It will look at taxes as a whole, including non-domestic rates, following a recommendation on this from the New Deal for Business Group, set up by First Minister Humza Yousaf in a bid to “reset” the Government’s relationship with the business community.

The Tax Advisory Group will include economics experts from think tanks the Fraser of Allander Institute and the Institute for Fiscal Studies, business leaders from the Scottish Chambers of Commerce, and union representatives from the Scottish Trades Union Congress as well as members of the Robertson Trust anti-poverty charity.

Its work will be considered by the Government when preparing the Scottish budget for 2024-25, as well as in the longer term, tax strategy adopted by ministers.

Deputy First Minister Shona Robison said: “We want to build a tax system that works for everyone in Scotland, while allowing us to continue to deliver high-quality, public services and keep our finances on a sustainable footing.

“A core part of this is ensuring we talk to as wide a range of people as possible, which is why I am convening this group to provide us with strategic advice.

“Each member will bring to the table ideas and insights from across Scottish society, ensuring we can develop a tax system that is fair, progressive and effective.”

The Tax Advisory Group is being established at the same time as the New Deal for Business Group issued its recommendations to the First Minister.

It recommended reforms to non-domestic rates to be kept under review to help deliver the “most competitive environment to do business whilst also supporting our communities”.

It also called for a return of the Independent Regulatory Review Group, which was set up by the previous Labour/Liberal Democrat administration in 2004 in order to improve the regulatory environment for business.

However, the organisation was stood down in 2020 during the Covid pandemic.

Co-chair of the New Deal for Business Group, Dr Poonam Malik, the head of investments at Strathclyde University, spoke of members’ “desire for change” and “positive mindset”.

Wellbeing Economy Secretary Neil Gray, who also co-chaired the group, said: “The Scottish Government is listening to business and is committed to taking forward these recommendations to deliver a wellbeing economy with sustainability and fairness at its heart that allows business and, in turn, society, to thrive.”