General Election 2024: Scottish party manifestos hint at 2026 tax debate
Scotland’s parties continue to publish their General Election manifestos, and while these largely mirror those of their UK counterparts, they offer hints on what the tax policy landscape could look like by the time of the next Scottish Parliament elections in 2026.
The Scottish Conservatives published their election manifesto on Monday (4 June) with commitments to cut Scottish income tax and Land and Buildings Transaction Tax (LBTT), the devolved version of Stamp Duty Land Tax.
Titled – Focused On Your Priorities – the manifesto highlights some Scottish-specific tax proposals in addition to the tax measures contained in the UK Conservative manifesto.
They include:
- Cutting the Scottish intermediate income tax rate by 1p to 20p (effectively abolishing the rate)
- In the longer-term, taking steps to ensure “no worker [is] paying more tax in Scotland on their earnings than in the rest of the UK”
- Increase the starting threshold for the devolved Land and Buildings Transaction Tax (LBTT) from £145,000 to £250,000.
- Pass on 75% (business) rates relief to retail, hospitality and leisure businesses in Scotland, for the years it is delivered by the UK Government in England.
- Oppose the Workplace Parking Levy and Tourist Tax.
Because these are devolved policies, the party would only be able to implement them if they formed – or were able to influence – Scottish Government following the 2026 Scottish Parliament election.
The other UK-wide parties in Scotland have also published their own Scottish manifestos. The tax proposals in the Scottish Labour Party and Scottish Liberal Democrat manifestos mirror those of their UK parties, but they hint at what their tax policies could look like in 2026.
Scottish Labour’s manifesto – Change – says that the party “will not raise taxes for working people” in Scotland, similar to its pledge to voters in the rest of the UK, while the Scottish Liberal Democrats document – For a Fair Deal – includes a commitment to lowering income tax through increases in the personal allowance. Such a policy would apply in Scotland, as control over the allowance is set at a UK-wide level.