Greens plan 16 new taxes in ‘freebie Scotland’ – Daily Business

Gillian Mackay and Ross Greer plan raid on business and higher earners (pic: DB Media Services)

Scottish Green Party policies would hammer middle income families and businesses through 16 new taxes to pay for a massive expansion of the welfare state, according to new analysis.

The party’s 165-page manifesto proposes higher taxes on mid-sized properties, landlords, online retailers, supermarkets and air passengers to pay for a new set of free services, including bus travel and dental care.

Council taxes would rise, as would land and buildings transaction tax, as well as tax rates on landlords’ rental income.

Combined with other “punishing” policies on the private rental sector, such as tougher rent controls, “this would encourage landlords to exit the market,” says David Phillips, head of devolved and local government Finance at the think tank.

Increasing the marginal rate of LBTT on values above £1 million to 15% would increase the tax on a £1.5 million purchase by £15,000, from £138,350 to £153,350 – over 10% of the purchase price.

On council tax, the IFS says the Scottish Greens have assumed councils would set a tax rate of 1% of property value. This compares to an average under the existing council tax system of around 0.7% of property value as of 2025–26.

“So, the average tax bill would rise under the Scottish Greens’ proposal,” he says. The IFS estimates that a property currently in Band D valued at £211,000 would see its council tax rocket from £1,653 currently to £2,110.

Landlords would be hit by higher taxes (pic: DB Media Services)

Apart from free bus travel and dental care for everyone the Greens want free non-residential social care and seek to bring buses back into public ownership, with councils borrowing to cover the cost of purchasing buses and depots from the private sector.

The IFS raises concerns over the party’s flagship policy – a substantial boost to GP numbers to achieve at least 1 GP per 1,000 people.

“Given Scotland had around 0.65 GPs per 1,000 people as of March 2025, this is a very large increase indeed,” says Mr Phillips.

He adds that delivering the full set of spending increases “would require even more revenue than would be generated by the increases in taxes that the party seems to have assumed”.

While recognising that the party intends to cover spending with higher revenues, he says “these tax plans would cement Scotland’s position as the highest-taxed part of the UK.

“Some of the policies proposed do not look well targeted.” He questions why a tax on those selling alcohol and tobacco should be considered socially harmful if sold by large retailers but not if sold by small retailers.

He says “the net effect of the plans would be a big increase in the complexity of the tax system – aside from the upheaval and complexity associated with the process of change itself.”

Director of the Scottish Retail Consortium, David Lonsdale, said: “The manifesto is a charter for extra cost and complexity with a bewildering hotchpotch of new or reheated ideas for taxes and levies on retailers of alcohol and fireworks, stores located out-with town centres, as well as retailers who trade predominantly online.

David Lonsdale: rising costs would be passed on to consumers (pic: DB Media Services)

“The cost of operating a retail business is ultimately borne by customers and extra taxes and levies would inevitably be passed on to Scottish consumers.”

On the proposal to allow Scotland’s 32 councils rather than Scottish Ministers to set business rates, reliefs, and surcharges, he said: “Scottish Ministers rather than local authorities should continue to set the business rate given the consistency and predictability it provides.

“A kaleidoscope of differing poundage rates, reliefs, and surcharges across each of Scotland’s thirty-two councils would add fresh complexity and cost and exacerbate the challenges faced by property-intensive sectors like retail which underpin the vitality of our high streets.”

Scottish Conservatives business and economy spokesman Murdo Fraser said: “This bonkers set of proposals show that the Greens are living on a different planet.

“They are going to clobber hard-working families and businesses with a whole host of new taxes at a time when bills are already going through the roof.

“These are the extremists that John Swinney still refuses to rule out bringing back into government, purely because the Greens share his desire to break up the United Kingdom.”

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