Who will bring Tax Justice to Scotland? Assessing the 2026 Scottish Parliamentary Manifestos

As Scotland heads to the polls this week to elect its new government, there is a big opportunity for Scotland to introduce progressive tax reforms that tax wealth fairly. The SNP have been running Scotland for nearly 20 years— despite having been nearly obliterated at Westminster by Labour in 2024, they look set to be the largest party in Holyrood by some margin in 2026. Reform and the Liberal Democrats expect to make big gains, whilst the Conservatives and Labour appear to be heading backwards. The Scottish Greens are also feeling confident, and could very well end up being the kingmakers (all of the main party leaders are men) in a hung parliament. 

But how do the parties stack up on tax justice? We analysed their manifesto’s, and here’s what we found (in alphabetical order…). 

CONSERVATIVES

The Scottish Conservative Manifesto pledges a wide range of tax cuts, which disproportionately benefit the better-off, funded by savage cuts to public spending. They claim that they will “lower your bills by up to £2,483 a year” but the policies presented show that someone on minimum wage would only have their tax cut by about £600. They have also pledged not to raise any taxes, and to oppose the introduction of any new ones— a short sighted move that squanders any opportunity Scotland would have for positive change. However, their proposals to reform Business Rates with a tax free allowance, similar to how income tax bands work, is to be welcomed. Their proposal to abolish Land, Buildings and Transaction Tax would be a positive step, but should be incorporated into Council Tax rather than abolished entirely, as the lost revenue will necessitate cuts to public services. 

THE GREEN PARTY

The Scottish Greens manifesto is a truly radical offering for Scotland, which would deliver massive structural change to the Scottish tax system and economy. They have included a commitment to replacing Council Tax with a proportional property tax with regular revaluations— a major step to making property taxes fairer. They have also, as you would expect, proposed a series of taxes on polluting industries and activities. This includes a Frequent Flyer Levy, a Carbon Emissions Land Tax, a Cruise Ship Levy, increase in Landfill Tax and a Tourism Tax.

The Greens have also made bold and progressive pledges that are currently out of scope for the Scottish Parliament. They have called for the exploration of a Scottish Wealth Tax— at the moment, the devolved settlement would mean that a wealth tax would have to be a replacement for Council Tax. But rules can be changed, and it’s great to see a party seriously looking at taxing wealth more. They have also pledged to tackle corporate tax abuse and make the largest companies pay their fair share. Corporation Tax and most of the tax laws around multinationals aren’t devolved, but we strongly welcome more voices on the need to tax big corporations more. Overall, this is an ambitious and transformative manifesto that would really push Scotland’s tax system in a fairer direction. 

LABOUR

The Scottish Labour’s manifesto doesn’t propose much on progressive tax reform. They have promised to grow the economy faster than is currently projected, and aim to reduce taxes once the economy improves enough. They have also promised to replace Business Rates with a local business levy, but it’s not clear what this means in practice. They have also promised to build a political consensus on reforming Council Tax, but have left the details vague. Compared to their Welsh colleagues, this a fairly weak manifesto for progressive tax reform from Labour. 

LIBERAL DEMOCRATS

The Scottish Liberal Democrat manifesto has some ambitious proposals for making Scotland’s taxes fairer. This includes replacing Council Tax with a Land Value Tax, reforming Business Rates and the Land and Buildings Transaction Tax. They have also pledged to introduce a Private Jet Tax and a point of entry charge for cruise ships, which would tax these highly polluting activities more. Importantly, they have called for a specialist team to do a comprehensive review of the Scottish tax code, assessing its impact on the economy and looking at how to fairly increase revenue, which is to be welcomed. However, like the SNP the Liberal Democrats have also proposed replacing the Energy Profits Levy, with the details left somewhat unclear.

REFORM

Scottish Reform’s manifesto promises massive Income Tax cuts to be funded by savage cuts to public services, and rollbacks on efforts to tackle climate change. They have also promised to scrap rises in Business Rates and Council Tax, and the Scottish government’s Mansion Tax. All these tax cuts will be funded by cuts to public services, and the IFS considers them completely undeliverable. On the positive side, Reform has promised to replace Business Rates and Land and Buildings Transaction Tax with a revenue neutral and more predictable Annual Property Tax.  

THE SNP

The SNP’s Manifesto pledges several welcome tax measures, including the introduction of a Private Jet Tax, and the introduction of a Mansion Tax on homes worth over £1m. There is also a commitment to reforming Business Rates and Council Tax, but the details are unclear. However, they have said they want to replace the Energy Profits Levy, which ensures that oil and gas companies pay their fair share of taxes from windfall profits, which would undermine both decarbonisation efforts and be a big tax cut to global fossil fuel companies. 

Looking across all the parties, the Liberal Democrats have positive proposals on property tax reform, whilst the Greens have an ambitious agenda for taxing wealth more. The SNP and Labour have a mix of proposals, whilst the Conservatives and Reform would take Scotland backwards on tax justice— cutting taxes for the well-off, funded by savage cuts to the public services that ordinary Scottish people depend upon.