Publication: Fiscal sustainability and tax - audit scope

The Scotland Acts of 2012 and 2016 devolved significant tax powers to the Scottish Parliament. For the first time since devolution, the Scottish Parliament became responsible for raising a proportion of the funding to support its spending. Scottish income tax, Scottish Landfill tax and Land and Buildings Transaction Tax (the Scottish version of Stamp Duty) have all been active since the late 2010s. These three taxes are forecast to generate £21.5 billion of revenue in 2025/26.

Tax policy is a key part of the Scottish Government’s approach to sustainable and affordable public services over the medium term, alongside spending controls and growing the economy. This audit will set out the impact of devolved taxes on fiscal sustainability, consider the opportunities, risks and challenges of using tax as a lever to achieve fiscal sustainability, and assess how well the Scottish Government is managing this. We plan to publish in November 2025.